Central European equity markets show signs of random walk efficiency.
The article examines the efficiency of stock markets in the Czech Republic, Hungary, and Poland from 1995 to 2000. By analyzing different tests, it is found that stock prices in these markets follow a random walk pattern, indicating weak-form efficiency. However, results from the variance ratio test are mixed. Comparing different forecasting models shows that the random-walk hypothesis is rejected for these Central European equity markets.