TESTING WEAK FORM EFFICIENCY: A STUDY OF SELECTED COMPANIES IN BSE

Abstract

Market Efficiency refers to the accuracy and promptness with prices reflect market information. The Weak form Efficient Market Hypothesis asserts that security prices fully impound all security market information relating to prices, trading volumes rate of return etc. Stock prices cannot be predicted by analysis of past price. This means that there is no relationship between past and future price movements. This paper made an attempt to study the effect of past prices of the stock are reflected on the future price movements. The filter rule, Runs Test, Serial Correlation are adopted to find out the market efficiency. The stock price of the selected companies has been ken from BSE SENSEX.