Market Efficiency: Definitions And Tests

Abstract: Stock markets are considered to be one of the key indicators of the economic health of countries. The major attribute of capital market is that the prices of securities must reflect all available information, and new information should swiftly adjust into prices so that no investor can generate excess returns by the use of such information. A large number of tests on the relevance and applicability of the random walk hypothesis and EMH which is carried out across the globe.