from 2011 and this may not be accurate. Thus we can land up with a relative measure to compare efficiencies of different markets or different time periods.
This study will be based on the inference that the CMP is the fair value of a stock as per EMH. However, the EMH was mainly focused on the flow of information and not on valuations. To study this, the market needs to be observed for flow of information in various instances like,
Stock Splits
Mergers and Acquisition
Yearly or Quarterly results
Scams
Macro Economic changes
Changes in capital structures
Buyback
Dividend Announcements
Unit root test, Co-integration Test, variance ratio tests, autocorrelation test and few other tests are generally used to test the EMH. For a week form, a study is carried out whether the CMP are a reflection of the previous prices. For a semi strong, a study is done to measure the speed at which a particular piece of information affects the stock price. For a strong form, a study can be done to check if any mutual funds, investment funds or individual investors have generated above average returns over the years. Is a study required for a strong form? Can we straight away say that, the markets do not have a strong form of efficiency because there are people like Warren Buffet and Rakesh Jhunjunwala? Can we say that, there is no strong form as there are scams like in case of Satyam where investors did not have the
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