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The Use Of Selected Economic Indicators In Regression Analysis To Test Semi-Strong Market Efficiency Of Asset Pricing, Kevin E. Pearson

Presidential Scholars Theses (1990 – 2006)

The concept of market efficiency is a widely known and researched concept. The profit motive present in the market combined with advancements in trading technology and company knowledge have practically eliminated mispricing in equity markets. However, the limited number of hours of trading present in stock exchanges of the United States generates the potential for a certain amount of inefficiency. This inefficiency results from the inability of various stock markets to process certain types of public information because of the timing of its arrival in relation to the operating hours of the market. This paper will outline the process followed …