Weak- Form Efficiency in the German Stock Market

The implications of the efficient market hypothesis are important inassessing public policy issues. this paper attempts to examine theweak-form efficiency of the dax stock market. five randomly chosencompanies and different sub samples are used to confirm the results. theresults show that the dax stock market follows a random walk andsupports the weak-form efficiency of efficient market hypothesis(emh). however, in some models, the strict rational expectations(re)/emh element of 'unpredictability' is rejected, but not necessarilythe view of emh which emphasizes the impossibility of makingsupernormal profits