... by Cunningham found that there were no significant dependences in price changes suggesting that the UK stock market was weak-form efficient. Fama (1970) made a distinction between three forms of EMH:> The weak form.> The semi-strong form.> The strong form. However, it is the semi-strong form of EMH that has formed the basis for most research. Weak-form efficiency No extra returns can be earned by using investment strategies based on historical share prices or other financial data. Weak-form efficiency implies that no Technical analysis techniques will be able to consistently produce excess returns. To test for weak-form efficiency it is sufficient to use statistical investigations on time series data of prices. In a weak-form efficient market current share prices are the best, unbiased, estimate of the value of the security. The only factor that affects these prices is the introduction of previously unknown news. News is generally assumed to occur randomly, so share price ...

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