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Efficiency in portuguese stock exchange indexes : runs tests and BDS statistics

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Detalhes bibliográficos
Resumo:This paper tries to assess the efficiency of the Portuguese sectoral stock exchange indexes. Using daily returns for the period 1990-1996 an old test (runs tests) and a new test (BDS statistic) are performed in order to decide whether we can accept the weak form efficiency hypothesis. Computation of the BDS statistic led us to conclude that daily returns are non-linearly dependent. The runs tests show that at best, some of those series may be linearly independent, therefore. arbitrage opportunities are probably available in the Portuguese Stock Exchange.
Autores principais:Afonso, António
Outros Autores:Teixeira, João Cláudio
Assunto:Capital Markets Stock Exchange Index Return of Investment Portugal
Ano:1997
País:Portugal
Tipo de documento:working paper
Tipo de acesso:acesso aberto
Instituição associada:Universidade de Lisboa
Idioma:inglês
Origem:Repositório da Universidade de Lisboa
Descrição
Resumo:This paper tries to assess the efficiency of the Portuguese sectoral stock exchange indexes. Using daily returns for the period 1990-1996 an old test (runs tests) and a new test (BDS statistic) are performed in order to decide whether we can accept the weak form efficiency hypothesis. Computation of the BDS statistic led us to conclude that daily returns are non-linearly dependent. The runs tests show that at best, some of those series may be linearly independent, therefore. arbitrage opportunities are probably available in the Portuguese Stock Exchange.