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Testing of random walk hypothesis of Rwanda stock market returns


tab-stops:150.0pt">ABSTRACT






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behavior of stock market returns is a central issue to the theory and practice

of asset pricing, asset allocation, and risk management. The supporters of the

Efficient Market Hypothesis claim that stock price indices are basically random

and as such any speculation based on past information is fruitless. These

papers investigate the Random Walk (RW) behavior of stock market return of

Rwanda. The naïve random walk model was estimated using Ordinary Least Squares

(OLS) method over the period 1st January, 2015 to 31st December,

2015. The daily data are obtained from the Bank of National Rwanda the study

result reveals that the return series is insignificantly different from zero,

which is consistent with the random walk hypothesis. The present study

therefore suggests that the Rwanda stock market is found to be efficient and

supports the random walk behavior.






200%;tab-stops:150.0pt">Key words: Rwanda Stock

Exchange, Random Walk Hypothesis and OLS


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200%;tab-stops:150.0pt">               TABLE OF CONTENT


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introduction
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Review

of Literature
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Methodology  and Data




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Augmented

Dickey-Fuller (ADF) Test




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Phillips-Perron

(PP) test




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Data
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 Empirical Results and Discussion
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Conclusion
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APA

GGev1v95c0011cf96e5d7.01255267, 6. (2018). Testing of random walk hypothesis of Rwanda stock market returns. Afribary. Retrieved from https://beta.afribary.com/works/testing-of-random-walk-hypothesis-of-rwanda-stock-market-returns-5438

MLA 8th

GGev1v95c0011cf96e5d7.01255267, 62tZq375c0011cf94c3d7.20663560 "Testing of random walk hypothesis of Rwanda stock market returns" Afribary. Afribary, 29 Jan. 2018, https://beta.afribary.com/works/testing-of-random-walk-hypothesis-of-rwanda-stock-market-returns-5438. Accessed 24 Apr. 2025.

MLA7

GGev1v95c0011cf96e5d7.01255267, 62tZq375c0011cf94c3d7.20663560 . "Testing of random walk hypothesis of Rwanda stock market returns". Afribary, Afribary, 29 Jan. 2018. Web. 24 Apr. 2025. < https://beta.afribary.com/works/testing-of-random-walk-hypothesis-of-rwanda-stock-market-returns-5438 >.

Chicago

GGev1v95c0011cf96e5d7.01255267, 62tZq375c0011cf94c3d7.20663560 . "Testing of random walk hypothesis of Rwanda stock market returns" Afribary (2018). Accessed April 24, 2025. https://beta.afribary.com/works/testing-of-random-walk-hypothesis-of-rwanda-stock-market-returns-5438

Document Details
By: 62tZq375c0011cf94c3d7.20663560 GGev1v95c0011cf96e5d7.01255267 Field: Economics Type: Paper 13 PAGES (2580 WORDS) (pdf)
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