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Adaptive Market Hypothesis: Evidence from three centuries of UK data

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  • Ali Almail
  • Fahad Almudhaf

Abstract

We examine the evolving efficiency of UK stock market and currency (British Pound) during the last three centuries. Using both Automatic Variance Ratio (AVR) and Automatic Portmanteau (AQ) tests, we find evidence of time-varying degree of efficiency which supports the Adaptive Markets Hypothesis (AMH).

Suggested Citation

  • Ali Almail & Fahad Almudhaf, 2017. "Adaptive Market Hypothesis: Evidence from three centuries of UK data," Economics and Business Letters, Oviedo University Press, vol. 6(2), pages 48-53.
    • Handle: RePEc:ove:journl:aid:11556
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    File URL: https://reunido.uniovi.es/index.php/EBL/article/view/11556
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    2. Rangan Gupta & Vasilios Plakandaras, 2019. "Efficiency in BRICS Currency Markets Using Long-Spans of Data: Evidence from Model-Free Tests of Directional Predictability," Journal of Economics and Behavioral Studies, AMH International, vol. 11(1), pages 152-165.

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