RANDOM WALK HYPOTHESIS IN FINANCIAL MARKETS
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...
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| Format: | Article |
| Language: | English |
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Nicolae Titulescu University Publishing House
2017-05-01
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| Series: | Challenges of the Knowledge Society |
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| Online Access: | http://cks.univnt.ro/uploads/cks_2017_articles/index.php?dir=10_it_laboratory%2F&download=CKS_2017_it_in_social_sciences_002.pdf |
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| author | Nicolae-Marius JULA Nicoleta JULA |
| author_facet | Nicolae-Marius JULA Nicoleta JULA |
| author_sort | Nicolae-Marius JULA |
| collection | DOAJ |
| description | 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. |
| format | Article |
| id | doaj-art-47dccac6708c4ca5a75fadcb66e2c91e |
| institution | DOAJ |
| issn | 2068-7796 2068-7796 |
| language | English |
| publishDate | 2017-05-01 |
| publisher | Nicolae Titulescu University Publishing House |
| record_format | Article |
| series | Challenges of the Knowledge Society |
| spelling | doaj-art-47dccac6708c4ca5a75fadcb66e2c91e2025-08-20T02:57:57ZengNicolae Titulescu University Publishing HouseChallenges of the Knowledge Society2068-77962068-77962017-05-017-878884RANDOM WALK HYPOTHESIS IN FINANCIAL MARKETSNicolae-Marius JULA0Nicoleta JULA1Lecturer, PhD Faculty of Economics and Business Administration, “Nicolae Titulescu” University of BucharestProfessor, PhD, Faculty of Economics and Business Administration, “Nicolae Titulescu” University of BucharestRandom 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.http://cks.univnt.ro/uploads/cks_2017_articles/index.php?dir=10_it_laboratory%2F&download=CKS_2017_it_in_social_sciences_002.pdfrandom walkfinancial marketstock pricestatistical testR |
| spellingShingle | Nicolae-Marius JULA Nicoleta JULA RANDOM WALK HYPOTHESIS IN FINANCIAL MARKETS Challenges of the Knowledge Society random walk financial market stock price statistical test R |
| title | RANDOM WALK HYPOTHESIS IN FINANCIAL MARKETS |
| title_full | RANDOM WALK HYPOTHESIS IN FINANCIAL MARKETS |
| title_fullStr | RANDOM WALK HYPOTHESIS IN FINANCIAL MARKETS |
| title_full_unstemmed | RANDOM WALK HYPOTHESIS IN FINANCIAL MARKETS |
| title_short | RANDOM WALK HYPOTHESIS IN FINANCIAL MARKETS |
| title_sort | random walk hypothesis in financial markets |
| topic | random walk financial market stock price statistical test R |
| url | http://cks.univnt.ro/uploads/cks_2017_articles/index.php?dir=10_it_laboratory%2F&download=CKS_2017_it_in_social_sciences_002.pdf |
| work_keys_str_mv | AT nicolaemariusjula randomwalkhypothesisinfinancialmarkets AT nicoletajula randomwalkhypothesisinfinancialmarkets |