Random Walk of Security Prices: Empirical Evidence from KSE, LSE, and ISE

Yasir Kamal,Kashif Ur Rehman

doi:10.31384/jisrmsse/2006.04.1.3

Abstract

Previously security market research had been focused mainly on developed economies with no attention paid to the security markets of developing countries of South East Asia. In an attempt to fill this gap in the literature, this paper conducts an empirical investigation of the random walk of security prices in Pakistani stock markets. The Augmented Dickey fuller test, Ljung Box Q test, Variance ratio test and a non parametric Run test has been used for analysis of Random walk of security prices. Results indicate the presence of some predictable elements, which contradict with previous studies on Karachi stock market. This is because of the difference in number of observation used in previous studies and this particular study. To conclude, the Karachi stock exchange and Islamabad stock exchange does show a weak random walk of security prices, while Lahore stock exchange show strong random walk of security prices.

Highlights

In humans, aggression is usually understood as behaviour which is intended to harm other person either physically or verbally
Hypothesis No 1, “the expression of aggression will be greater for men than women”, as the table value (3.160) is less than the obtained value (7.508) at .001 level of significance, so we accept the hypothesis that is there is significance difference between the expression of aggression for men and women
Hypothesis No 2, “the expression of aggression will be greater for teenage group than the middle age group”, it may be noted from the t test table that the table value (1.980) is less than the obtained value (2.426) at 0.025 level of significance

Summary

Introduction

Aggression is usually understood as behaviour which is intended to harm other person either physically or verbally. According to Bandura, (1977), people became aggressive because they have learned by experience, observation and imitation that it pays. He argues that frustration does not innately lead to aggression but will do so if the individual has learned that this kind of behaviour is reinforcing. Humans can learn this in principle, by being repeatedly reinforced for acting aggressively, and by observing that others are so reinforced and initiating them. Subjects working in a hot, stuffy room shared more aggression than controls that were working in more pleasant surroundings, but only when both groups had watched activities of aggressive model (Baron and Lawton, 1974)

Methods

Results

Conclusion