EMERGENT CAPITAL MARKETS’ EFFICIENCY: THE CASE OF POLAND

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Published: Jun 17, 2014
DOI: https://doi.org/10.5750/jpm.v8i1.850
Keywords:
Efficient Market Hypothesis Technical Trading Risk Poland Buy and Hold

Main Article Content

Massoud Metghalchi
University of Houston - Victoria
Adriano Pinho
Graduate Student, UHV
Adriana Sarmento
Graduate Student, UHV

Abstract

We apply two well-known technical indicators to the Polish Stock index over the period of 9/4/1998 to 4/18/2013. Our findings support the predictive power of technical trading rules for each sub-period and for the entire period. We then ask whether an investor can use the predictive power of technical analysis to beat the profitability of the buy-and-hold strategy considering both transaction costs and risk. We conclude that it is not possible to beat the buy and hold strategy when considering transaction costs and risk. We could say the Polish market is efficient. 

Article Details

Issue
Vol. 8 No. 1 (2014)
Section
Articles
Author Biographies

Massoud Metghalchi, University of Houston - Victoria

Professor of finance, school of business administration, University of Houston - Victoria

Adriano Pinho, Graduate Student, UHV

Graduate Student, UHV

Adriana Sarmento, Graduate Student, UHV

Graduate Student, UHV

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