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Random Walk Behavior Of Emerging Stocks Markets: Evidence From Karachi Stock Exchange

Author

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  • RIZWAN QAMAR Muhammad

    (National Defence University, Islamabad, Pakistan)

  • SHEIKH Ali Nawaz

    (National Defence University, Islamabad, Pakistan)

Abstract

This paper is about the behavioral aspects of capital markets. The research work emphasis on the weak form efficiency of Karachi stock exchange (KSE) which is an emerging stock market of Pakistan. It is researched that investors in KSE gaining abnormal profits or not by using historical prices. For this purpose KSE index data was taken and three econometric tests including Runs test, Unit root and Autocorrelation function test were applied. The results rejected the null hypothesis and concluded that the Karachi stock market is weak form inefficient. The results of this research are in line with the previous studies.

Suggested Citation

  • RIZWAN QAMAR Muhammad & SHEIKH Ali Nawaz, 2014. "Random Walk Behavior Of Emerging Stocks Markets: Evidence From Karachi Stock Exchange," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 9(3), pages 97-106, December.
    • Handle: RePEc:blg:journl:v:9:y:2014:i:3:p:97-106
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    References listed on IDEAS

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