RANDOM WALK HYPOTHESIS IN FINANCIAL MARKETS
Journal Title: Challenges of the knowledge society ( Provocari ale societatii cunoasterii ) - Year 2017, Vol 9, Issue 11
Abstract
Random walk hypothesis states that the stock market prices do not follow a predictable trajectory, but are simply random. If you are trying to predict a random set of data, one should test for randomness, because, despite the power and complexity of the used models, the results cannot be trustworthy. There are several methods for testing these hypotheses and the use of computational power provided by the R environment makes the work of the researcher easier and with a cost-effective approach. The increasing power of computing and the continuous development of econometric tests should give the potential investors new tools in selecting commodities and investing in efficient markets.
Authors and Affiliations
Nicolae-Marius JULA, Nicoleta JULA
Keywords
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- EP ID EP299763
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