A note on weak form market efficiency in security prices: evidence from the Hong Kong stock exchange

This paper employs variance ratio tests with both homoscedastic and heteros cedastic error variances to examine the random walk hypothesis for the Hang Seng Index on the Hong Kong Stock Exchange. The empirical investigation le ads us to suggest that the Hang Seng follows a random walk model and conseq uently that the index is weak form efficient. This conclusion offers both c onfirmatory and conflicting support for the conclusions of previous researc h, which has investigated the presence of random walks in the indices of bo th developed and emerging markets.