Testing Of Weak Form Efficient Market Hypothesis: Evidence From The Casablanca Bourse 2010-2019

Résumé

Investors need to have an idea about stock market before making investment whether the stock markets are efficient or not to take investment decision in stock market. For that reason, measurement of market efficiency of stock market bears significance to investors. Bearing it in mind, In this paper, we employ various tests to investigate the weak form of the efficient market hypothesis for Casablanca bourse over the period from January 2010 until December 2019 ,This is done by time series stability tests used to test the weak form efficiency, and by using the MADX index that represents full stocks in the Casablanca Bourse During the period of study . The results show that prices in the financial market follow the hypothesis of random walk ,so, it is not possible to achieve extraordinary profits through the use of historical prices in order to predict future prices on the Casablanca bourse