Empirical Testing of Strong Form of Market Efficiency

Abstract

The majority of efficient market research to date has focused on developed markets like United States and European securities market. Not much research has been done on strong form of the efficient market hypothesis in developing countries markets like India. The efficient market hypothesis suggests that stock markets are "information efficient", i.e., any new information relevant to the market is spontaneously reflected in the stock prices, so nobody can use such information to consistently earn abnormally high returns. This paper shows that the Indian market is strong form efficient to the extent that mutual fund managers could not out perform randomly constructed portfolios of index stocks for the period 2003-2007. This implies that an investor can build his/her own portfolio without any expert guidance and still earn returns comparable to professionally managed funds.

Stock market and securities index prediction using artificial intelligence: A systematic review

“…The EMH may need to be more accurate in a workout as many market participants consistently outperform the market. The validity of EMH is disputed as there is ample evidence that markets are not entirely efficient (Gupta et al, 2008). Predicting future stock prices or indices is more possible than random trading (Shahvaroughi et al 2021).…”

Assessing the Consumers’ Purchase Intention and Consumption of Convenience Food in Emerging Economy: The Role of Physical Determinants

“…The motivation for cooking food from scratch is diminishing because consumers perceive that meal preparation from basic ingredients is a time consuming and tiring process (Boustani & Guine´, 2020;Celnik et al, 2021;Hartmann et al, 2013;Slater, 2012). Globally, a decreasing trend in cooking skills and motivation has been observed resulting from the lack of domestic culinary training, inclination toward career orientation, hectic work schedule, competitive environment, time pressure due to social and religious engagements, engagement in leisure activities, and lack of sufficient cooking resources (Brasington et al, 2021;Gupta & Singh, 2016;Priyadarshini, 2015). In view of the above comprehensive review, the hypothesis is proposed as: H7: Lack of motivation in cooking from scratch has a positive relationship with consumer's intention to purchase convenience food.…”

“…In emerging economies like India, fast urbanization, significant rise in nuclear and dual working families, changing lifestyle, high work pressure, social engagement, and career-oriented environment are the major causes for time scarcity, which in turn increases the demand for convenience food. The consumers perceived that it saves time and energy; reduce stress; minimizes exertion due to preparing food from scratch and clean-up, provides opportunities for social and leisure activities and help in managing multiple responsibilities (Celnik et al, 2012; Chen & Antonelli, 2020; Djupegot et al, 2017; Gupta & Singh, 2016; Jabs & Devine, 2006; Jebarajakirthy et al, 2021).…”