Botswana Stock Exchange Shows Predictable Security Prices, Challenges Market Efficiency.
Market efficiency in Botswana Stock Exchange was tested using various techniques. The results show that security prices in Botswana market are predictable and volatile, rejecting the random walk model. This means that the market is not weak-form efficient, as evidenced by serial autocorrelation in return series. Both non-parametric and parametric tests support this conclusion, indicating that the Botswana Stock Exchange does not follow the efficient market hypothesis.