Abstract
A lot of research has been conducted to check whether the Frontier and emerging markets show weak form of efficiency or follow a random walk. Karachi Stock Exchange, being a frontier market, was tested on the basis of daily closing values from 2006 to 2011. The study showed KSE to be a weak form inefficient market following non randomness. Three tests were applied on the data. KSE proved to have a unit root, the values in the series showed a strong correlation. Moreover, a Z-statistic value was far greater than 1.96 which proved KSE to be an inefficient market. Inefficient markets have several implications for international as well as local investors.
Keywords
Karachi Stock Exchange, Investment, Emerging markets
DOI
https://doi.org/10.54784/1990-6587.1217
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Recommended Citation
Zulqarnain, J., & Shah, S. (2013). An empirical study on weak market efficiency of Karachi Stock Exchange. Business Review, 8(1), 77-84. Retrieved from https://doi.org/10.54784/1990-6587.1217
Submitted
February 25, 2021
Published
January 01, 2013
Included in
Publication Stage
Published
