Lets pick up from yesterday post. Empirical tests of the efficiency of capital markets have examined the extent to which the prices of securities reflect relevant information, i.e. pricing efficiency, because of lack of data for testing allocational and operational efficiency. Many studies have examined the extent to which it is possible to make abnormal return in excess of expected returns.
Markets are said to be “weak form efficient” if current security price reflect all past movements of share prices. It means it is not possible to make Continue reading “Market Efficiency & its forms”