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- W2569890713 abstract "The Zimbabwean dollar lost its value and purpose as a medium of exchange as a result of the hyper inflation which had itsgreatest impact on the Zimbabwean economy between 2007 and 2008. The introduction of the multi-currency system, whichentails the use of various foreign currencies to transact, resulted in the Zimbabwe Stock Exchange (ZSE) adopting the UnitedStates dollar (USD) as its main currency. The researchers investigated the weak form efficiency of the ZSE after introduction ofthe multi-currency system by testing if it is possible to create an excess return by the use of technical trading rules. According tothe efficient market hypothesis (EMH) and the random walk theory, in an efficient market it is not possible to predict the futurestock prices by analysing historical stock prices. The profitability of technical analysis and technical trading rules has beenresearched and debated extensively, but researchers are yet to reach a consensus. This article focuses exclusively on the ZSE.The purpose of this article is to test whether the ZSE exhibits weak form market efficiency. The data used to carry out theempirical study was obtained from the ZSE for the period 19 February 2009 to 28 June 2012. The efficiency of the ZSE is testedusing the daily closing prices and indices over the aforementioned period. The data was then subjected to a number of testsnamely auto-correlation, the runs test and the Q-statistic test. The results of the study provide evidence that the ZSE is not weakform efficient. This article adds to the existing body of knowledge and offers for the first time an investigation of the weak formefficiency on the ZSE following currency reform." @default.
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- W2569890713 date "2013-06-01" @default.
- W2569890713 modified "2023-09-27" @default.
- W2569890713 title "A Test of the Weak Form Efficiency of the Zimbabwe Stock Exchange After Currency Reform" @default.
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