Project Report Synopsis

Name :
Name Of The Programme : Post Graduate Diploma In Management
PGDM!
Registration Num"er :
#ddress $or %orrespondence :
&mail'Id :
Name of the Project Guide :

Designation ( #ddress :

Title of the Project :
)# ST*D+ ON T&STING S&MISTRONG $ORM O$ &M, $ROM S&-&%T&D
STO%. O$ /S& IND&01
PRO2&%T S+NOPSIS
3! P*RPOS& O$ ST*D+:
The present study gives an insight of three major forms of EMH. The weak-form
EMH claims that prices on traded assets (e.g. stocks !onds or property" already reflect
all past pu!licly availa!le information. The semi-strong-form EMH claims !oth that
prices reflect all pu!licly availa!le information and that prices instantly change to reflect
new pu!lic information. The strong-form EMH additionally claims that prices instantly
reflect even hidden or #insider# information.
4! 5OR.ING TIT-&:
)# ST*D+ ON T&STING S&MISTRONG $ORM O$ &M, $ROM S&-&%T&D
STO%. O$ /S& IND&01
6! #IM:
The aim of the study is concerned with the !ehavior of prices in asset markets.
The price changes in the shares prices may !e due to arrival of new information. $
market is said to !e efficient if prices adjust %uickly and on average without !ias to new
information. $s a result the current prices of securities reflect all availa!le information at
any given point in time.
Historically there was a very close link !etween EMH and the random-walk model and
then the Martingale a model.
$n &Efficient Market' is defined as a market where there are large num!er of
rational profit makers actively competing with each trying to predict future market values
of individual securities and where important current information is almost freely
availa!le to all the participants.
7! O/2&%TI8&S O$ T,& ST*D+:
To indicate whether prices of stocks consider past information and information
pu!licly availa!le as re%uired !y the semi strong form of Market Efficiency
Theory
To identify the relationship !etween (E)(E* and +ifferent companies taken in
sample
To study the variation caused in the return of the ,nde- and the companies taken
in the sample.
9! ,+POT,&SIS
.eak /orm: Ho: The price movements in the share prices in the (E)(E* are not
affected !y past prices.
(emi (trong /orm: H0: The security prices do not fully reflect all pu!licly
availa!le information.
:! S%OP& O$ T,& ST*D+:
EMH !ecome the su!ject of research interest !y looking at so many dimension of
EMH itself. /or e-ample the volatility of stock price towards efficient market EMH is
usually e-amined on the country !asis !y looking at whether the market is !eing efficient
or not. The study is confined to ,T sector.
;! .&+ <*&STIONS :
Q1. +oes stock market follows a random path1 2heck for their independence
employing $uto-2orrelation test.
34. .hat is the coefficient of correlation 5r5 !etween the price changes in the two
periods.
36. How to test the weak form of Efficient Market Hypothesis !y applying the
57un Test5 at 89 and 0:9 level of significance.
=! R&S&#R%, M&T,ODO-OG+:
The study was descriptive in nature. The population of the study was two prominent
companies listed in ;om!ay stock e-change. +ata will !e collected from the secondary
sources. +aily price data of the stock prices of (ense- and two companies will !e
collected from the we! site of ;(E.
P&RIOD O$ T,& ST*D+:
The study >ill "e done for the period of 6? days@
Data #nalysis tools: #uto correlationA Run testA B test >ill "e used@
C! -IMIT#TION O$ T,& ST*D+
The study is !ased on the secondary data which is availa!le from various source
of information.
The study is limited to only two companies.
The time taken to undertaken the project work is very short< hence only two
companies were chosen for the study.
PROPOS&D %ONT&NTS:
%hapter 3: Introduction
%hapter 4: ReDie> of -iterature
%hapter 6: Research Methodology
%hapter 7: %onceptual frame>orE
%hapter 9: Industry profile
%hapter :: #nalysis and Interpretation
%hapter ;: $inding and %onclusion
/i"liography
5OR. S%,&D*-&:
One >eeE for studying the eFisting system and reDie> of literature @
One >eeE for collection of secondary data
One >eeE for analysis and inference
One >eeE for project report documentation and preparation