Market Efficiency Hypothesis Application in the Czech Republic – the FOREX Case
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F26441021%3A_____%2F19%3AN0000005" target="_blank" >RIV/26441021:_____/19:N0000005 - isvavai.cz</a>
Result on the web
<a href="https://msed.vse.cz/msed_2019/article/2-Makovsky-Petr-paper.pdf" target="_blank" >https://msed.vse.cz/msed_2019/article/2-Makovsky-Petr-paper.pdf</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.18267/pr.2019.los.186.103" target="_blank" >10.18267/pr.2019.los.186.103</a>
Alternative languages
Result language
angličtina
Original language name
Market Efficiency Hypothesis Application in the Czech Republic – the FOREX Case
Original language description
The Market Efficiency Hypothesis (MEH) in its weak form assumes that stock prices already reflect all the available past information. In the other words in the absence of the new information stock should remain unchanged. It is impossible to achieve abnormal long-term returns. More the technical analysis seems to be useless in contrary with the fundamental analysis. It is necessary to say that the MEH is an essential part of rational economics. The MEH hypothesis is opposite to the behavioural finance approach. It is very interesting to observe the increasing interest in the behavioural finance despite the stable primary approach in the MEH hypothesis. In this paper, we demonstrate on the data sample of the Czech FOREX market verification/falsification of the MEH. We run analysis more than ten years from the Great Financial Crisis (GFC) in the 2008 (Lehman Brothers Crash). Now there are many signals for the further recession or other phenomena fur from equilibrium (overheated economy, inefficient labour market, bubbles etc.). Need to say that rational economics is equilibrium economics and do not expect disequilibrium. In our analysis, we provide clear answers on the questions about useless of the technical analysis, market efficiency, stock market regulation and other important problems of financial economics in the 21st century.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
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Continuities
N - Vyzkumna aktivita podporovana z neverejnych zdroju
Others
Publication year
2019
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
International Days of Statistics and Economics
ISBN
978-80-87990-18-6
ISSN
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e-ISSN
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Number of pages
11
Pages from-to
1033-1043
Publisher name
Vysoká škola ekonomická
Place of publication
Praha
Event location
Praha
Event date
Sep 5, 2019
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
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