Stock Price Behavior of Nepalese Commercial Banks: Random Walk Hypothesis
Using the data set on daily stock prices during the fiscal year 2015/16 (Sept 23, 2015 through Dec 22, 2015), this paper attempts to analyze the random behavior of stock price of Nepalese Commercial Banks by using run test, serial correlation and run tests and martingale random walk hypothesis under heteroscedasticity assumption of standard error. The results conclude that the proposition of Random Walk Hypothesis (RWH) in Nepalese stock markets does not hold true. This conclusion corroborates with the conclusions of the past studies carried out in Nepalese context.
Copyright © the School of Business. All rights reserved. No part of this volume may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by and information storage and retrieval system, without permission in writing from the publisher.