1. Home
  2. Browse Works
  3. Social & Management Sciences
  4. Testing of random walk hypothesis of Rwanda sto...

Testing of random walk hypothesis of Rwanda stock market returns

13 PAGES (2580 WORDS) Economics Paper
Read Download


tab-stops:150.0pt">ABSTRACT






200%;tab-stops:150.0pt">The

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


200%;tab-stops:150.0pt">


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


200%;tab-stops:150.0pt">






























































height:29.95pt">


text-align:center;line-height:200%;tab-stops:150.0pt;mso-element:frame;

mso-element-frame-hspace:9.0pt;mso-element-wrap:around;mso-element-anchor-vertical:

paragraph;mso-element-anchor-horizontal:margin;mso-element-top:21.9pt;

mso-height-rule:exactly">CONTENT
height:29.95pt">


text-align:center;line-height:200%;tab-stops:150.0pt;mso-element:frame;

mso-element-frame-hspace:9.0pt;mso-element-wrap:around;mso-element-anchor-vertical:

paragraph;mso-element-anchor-horizontal:margin;mso-element-top:21.9pt;

mso-height-rule:exactly">PAGE

height:29.1pt">


mso-add-space:auto;text-indent:-18.0pt;line-height:200%;mso-list:l0 level1 lfo1;

tab-stops:150.0pt;mso-element:frame;mso-element-frame-hspace:9.0pt;

mso-element-wrap:around;mso-element-anchor-vertical:paragraph;mso-element-anchor-horizontal:

margin;mso-element-top:21.9pt;mso-height-rule:exactly">
Arial">1.   

introduction
height:29.1pt">


text-align:center;line-height:200%;tab-stops:150.0pt;mso-element:frame;

mso-element-frame-hspace:9.0pt;mso-element-wrap:around;mso-element-anchor-vertical:

paragraph;mso-element-anchor-horizontal:margin;mso-element-top:21.9pt;

mso-height-rule:exactly">3

height:30.95pt">


mso-add-space:auto;text-indent:-18.0pt;line-height:200%;mso-list:l0 level1 lfo1;

tab-stops:150.0pt;mso-element:frame;mso-element-frame-hspace:9.0pt;

mso-element-wrap:around;mso-element-anchor-vertical:paragraph;mso-element-anchor-horizontal:

margin;mso-element-top:21.9pt;mso-height-rule:exactly">
Arial">2.   

Review

of Literature
height:30.95pt">


text-align:center;line-height:200%;tab-stops:150.0pt;mso-element:frame;

mso-element-frame-hspace:9.0pt;mso-element-wrap:around;mso-element-anchor-vertical:

paragraph;mso-element-anchor-horizontal:margin;mso-element-top:21.9pt;

mso-height-rule:exactly">4

height:28.6pt">


.0001pt;mso-add-space:auto;text-indent:-18.0pt;line-height:200%;mso-list:

l0 level1 lfo1;mso-element:frame;mso-element-frame-hspace:9.0pt;mso-element-wrap:

around;mso-element-anchor-vertical:paragraph;mso-element-anchor-horizontal:

margin;mso-element-top:21.9pt;mso-height-rule:exactly">
Arial">3.   

Methodology  and Data




margin-bottom:0cm;margin-left:39.75pt;margin-bottom:.0001pt;mso-add-space:

auto;text-indent:-21.75pt;line-height:200%;mso-list:l0 level2 lfo1;

mso-element:frame;mso-element-frame-hspace:9.0pt;mso-element-wrap:around;

mso-element-anchor-vertical:paragraph;mso-element-anchor-horizontal:margin;

mso-element-top:21.9pt;mso-height-rule:exactly">
Arial">3.1  

Augmented

Dickey-Fuller (ADF) Test




margin-bottom:0cm;margin-left:39.75pt;margin-bottom:.0001pt;mso-add-space:

auto;text-indent:-21.75pt;line-height:200%;mso-list:l0 level2 lfo1;

mso-element:frame;mso-element-frame-hspace:9.0pt;mso-element-wrap:around;

mso-element-anchor-vertical:paragraph;mso-element-anchor-horizontal:margin;

mso-element-top:21.9pt;mso-height-rule:exactly">
Arial">3.2  

Phillips-Perron

(PP) test




margin-bottom:0cm;margin-left:39.75pt;margin-bottom:.0001pt;mso-add-space:

auto;text-indent:-21.75pt;line-height:200%;mso-list:l0 level2 lfo1;

mso-element:frame;mso-element-frame-hspace:9.0pt;mso-element-wrap:around;

mso-element-anchor-vertical:paragraph;mso-element-anchor-horizontal:margin;

mso-element-top:21.9pt;mso-height-rule:exactly">
Arial">3.3  

Data
height:28.6pt">


text-align:center;line-height:200%;tab-stops:150.0pt;mso-element:frame;

mso-element-frame-hspace:9.0pt;mso-element-wrap:around;mso-element-anchor-vertical:

paragraph;mso-element-anchor-horizontal:margin;mso-element-top:21.9pt;

mso-height-rule:exactly">5




text-align:center;line-height:200%;tab-stops:150.0pt;mso-element:frame;

mso-element-frame-hspace:9.0pt;mso-element-wrap:around;mso-element-anchor-vertical:

paragraph;mso-element-anchor-horizontal:margin;mso-element-top:21.9pt;

mso-height-rule:exactly">6




text-align:center;line-height:200%;tab-stops:150.0pt;mso-element:frame;

mso-element-frame-hspace:9.0pt;mso-element-wrap:around;mso-element-anchor-vertical:

paragraph;mso-element-anchor-horizontal:margin;mso-element-top:21.9pt;

mso-height-rule:exactly">7




text-align:center;line-height:200%;tab-stops:150.0pt;mso-element:frame;

mso-element-frame-hspace:9.0pt;mso-element-wrap:around;mso-element-anchor-vertical:

paragraph;mso-element-anchor-horizontal:margin;mso-element-top:21.9pt;

mso-height-rule:exactly">8

height:50.2pt">


mso-add-space:auto;text-indent:-18.0pt;line-height:200%;mso-list:l0 level1 lfo1;

mso-element:frame;mso-element-frame-hspace:9.0pt;mso-element-wrap:around;

mso-element-anchor-vertical:paragraph;mso-element-anchor-horizontal:margin;

mso-element-top:21.9pt;mso-height-rule:exactly">
Arial">4.   

 Empirical Results and Discussion
height:50.2pt">


text-align:center;line-height:200%;tab-stops:150.0pt;mso-element:frame;

mso-element-frame-hspace:9.0pt;mso-element-wrap:around;mso-element-anchor-vertical:

paragraph;mso-element-anchor-horizontal:margin;mso-element-top:21.9pt;

mso-height-rule:exactly">8

height:1.0cm">


mso-add-space:auto;text-indent:-18.0pt;line-height:200%;mso-list:l0 level1 lfo1;

tab-stops:80.25pt;mso-element:frame;mso-element-frame-hspace:9.0pt;

mso-element-wrap:around;mso-element-anchor-vertical:paragraph;mso-element-anchor-horizontal:

margin;mso-element-top:21.9pt;mso-height-rule:exactly">
Arial">5.   

Conclusion
height:1.0cm">


text-align:center;line-height:200%;tab-stops:150.0pt;mso-element:frame;

mso-element-frame-hspace:9.0pt;mso-element-wrap:around;mso-element-anchor-vertical:

paragraph;mso-element-anchor-horizontal:margin;mso-element-top:21.9pt;

mso-height-rule:exactly">10

height:29.95pt">


mso-add-space:auto;text-align:justify;text-indent:-18.0pt;line-height:200%;

mso-list:l0 level1 lfo1;tab-stops:150.0pt;mso-element:frame;mso-element-frame-hspace:

9.0pt;mso-element-wrap:around;mso-element-anchor-vertical:paragraph;

mso-element-anchor-horizontal:margin;mso-element-top:21.9pt;mso-height-rule:

exactly">
mso-fareast-font-family:Arial">6.    References
height:29.95pt">


text-align:center;line-height:200%;tab-stops:150.0pt;mso-element:frame;

mso-element-frame-hspace:9.0pt;mso-element-wrap:around;mso-element-anchor-vertical:

paragraph;mso-element-anchor-horizontal:margin;mso-element-top:21.9pt;

mso-height-rule:exactly">12


text-align:center;line-height:200%;tab-stops:150.0pt;mso-element:frame;

mso-element-frame-hspace:9.0pt;mso-element-wrap:around;mso-element-anchor-vertical:

paragraph;mso-element-anchor-horizontal:margin;mso-element-top:21.9pt;

mso-height-rule:exactly">


text-align:center;line-height:200%;tab-stops:150.0pt;mso-element:frame;

mso-element-frame-hspace:9.0pt;mso-element-wrap:around;mso-element-anchor-vertical:

paragraph;mso-element-anchor-horizontal:margin;mso-element-top:21.9pt;

mso-height-rule:exactly">
Read Download
Related Works

Privacy Policy | Refund Policy | Terms | Copyright | © 2025, Afribary Limited. All rights reserved.