Advanced Search
MyIDEAS: Login to save this article or follow this journal

Weak- Form Efficiency in the German Stock Market

Contents:

Author Info

  • Shahram Fattahi

    (Department of Economics, Razi University)

  • Omid Ranjbar

    (Expert of Economic Studies - Iran Ministry of Commerce)

Registered author(s):

    Abstract

    The implications of the efficient market hypothesis are important in assessing public policy issues. This paper attempts to examine the weak-form efficiency of the DAX stock market. Five randomly chosen companies and different sub samples are used to confirm the results. The results show that the DAX stock market follows a random walk and supports the weak-form efficiency of efficient market hypothesis (EMH). However, in some models, the strict rational expectations (RE)/EMH element of ‘unpredictability’ is rejected, but not necessarily the view of EMH which emphasizes the impossibility of making supernormal profits..

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: ftp://80.66.179.253/eut/journl/20103-5.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Economics faculty of Tehran university in its journal Iranian Economic Review.

    Volume (Year): 15 (2010)
    Issue (Month): 3 (fall)
    Pages: 77-94

    as in new window
    Handle: RePEc:eut:journl:v:15:y:2010:i:3:p:77

    Contact details of provider:
    Postal: P.O. Box 14155-6445, Postal Code 14114, Tehran
    Phone: (021)634002-4
    Web page: http://economics.ut.ac.ir/
    More information through EDIRC

    Related research

    Keywords: Stock market efficiency; German stock market; Variance Ratio Test; ARMA; GARCH;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Meredith Beechey & David Gruen & James Vickery, 2000. "The Efficient Market Hypothesis: A Survey," RBA Research Discussion Papers rdp2000-01, Reserve Bank of Australia.
    2. Andrew W. Lo, A. Craig MacKinlay, 1988. "Stock Market Prices do not Follow Random Walks: Evidence from a Simple Specification Test," Review of Financial Studies, Society for Financial Studies, vol. 1(1), pages 41-66.
    3. Arusha Cooray, 2004. "The Random Walk Behaviour Of Stock Prices: A Comparative Study," Econometric Society 2004 Far Eastern Meetings 540, Econometric Society.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eut:journl:v:15:y:2010:i:3:p:77. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ([z.rahimalipour]).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.