Abstract
The effectiveness of the stock market is an important indicator to measure the efficiency of capital allocation in the secondary financial market, and is of great significance to the operation of the national economy. Whether the Mainland China’s stock market is weakly effective has always been controversial. This article uses the measurement method to conduct empirical data research on the five randomly selected stocks and the Shanghai Composite Index, analyzes the conclusions and analyzes the underlying reasons that lead to the low effectiveness of the Mainland China stock market.
Highlights
1.1 Research backgroundIn 1965, Eugene Fama, a professor of finance at the University of Chicago in the United States, published a paper entitled "Stock Market Price Behavior" and proposed an efficient market hypothesis
Exploring whether the CAPM model is applicable to the Chinese stock market
The Shanghai Composite Index closed for a total of 5605 trading days The price is a sample, and the analysis shows that the market efficiency may be gradually rising
Summary
In 1965, Eugene Fama, a professor of finance at the University of Chicago in the United States, published a paper entitled "Stock Market Price Behavior" and proposed an efficient market hypothesis. In 1952, Markowitz published an article on "asset selection", and the study of economics entered a new era, realizing a leap from qualitative to quantitative. In 1990, the Chinese government allowed Shanghai and Shenzhen to pilot public offerings of stocks, but they did not receive much attention. In 1995, China once again took measures to focus on supporting the stock market, creating a relaxed political environment for the development of the stock market, and the stock market used this to help rapid development. China's research on stock market efficiency began mainly in 1995
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