March 24, 2019 0 Comment

Nkemnole, E. (October 01, 2016). As stated by weak-form of the EMH, investors shouldnt be able to outperform the market continually through having a look at trends of past share prices or by formulating trading rules that are based on historic share returns. This paper investigated the lenght to which the equity prices of firms listed on the Nigerian Stock Exchange were consistent with the efficient market theory hypothesis. Particularly, the paper investigated the weak-form efficiency of the NSE using weekly returns for sixty nine most actively traded shares in 1995 to 2005. Nkemnole, E. tested the weak-form of the EMH using a battery of tests including tests of autocorrelations and technical trading strategies. Eventually, it pointed out that the NSE may be weak-form efficient for ordinary investors who operate in a costly trading environment