The main purpose of the present study is to test the random walk hypothesis that past prices cannot be used to predict the future price movements.
What does RWH stand for?
RWH stands for Random Walk Hypothesis (financial theory)
This definition appears somewhat frequently and is found in the following Acronym Finder categories:
- Business, finance, etc.
See other definitions of RWH
We have 13 other meanings of RWH in our Acronym Attic
- Royal Wellington Golf Club (Heretaunga, New Zealand)
- Royal Wimbledon Golf Club (UK)
- Royal Winchester Golf Club (UK)
- Regional Working Group on Environment (Europe)
- Radial Wire Ground System
- Rectangular Waveguide Section
- Reverse Water Gas Shift
- Radar Warning & Homing
- Raheen Woods Hotel (Ireland)
- Rain Water Harvesting
- Real Web Host (Flora, IL)
- Real World Haskell: Code You Can Believe In (book)
- Red Wine Headache
- Rental Water Heater
- Return With Honor
- Royal Women's Hospital (Australia)
- Rawdon, Wright, Hatch & Edson (printing firm)
- Royal Warrant Holders Association (London, England)
- Robotized Wire Harness Assembly System
- Ryan White HIV/AIDS Treatment Modernization Act
Samples in periodicals archive:
The random walk hypothesis is used to explain the successive price changes which are independent of each other.
t+1] = Random error with zero mean and finite variance Ko and Lee (1991) argued that "if the random walk hypothesis holds, the weak-form of the efficient market hypothesis must hold, but not vice versa.
Under the restricted version of the model the random walk hypothesis is rejected for Pakistan.
If, however, the simple random walk hypothesis is incorrect due to its exclusion of business cycle effects, then one would expect that positive (negative) tax rate changes would be associated with lagged changes in output above (below) normal.
Some recent theoretical development included the Barro's equivalence hypothesis (1974), Lucas' critique (1976), Hall's random walk hypothesis (RWH) (1978), as well as flexible approaches by Giovannini (1985) and Blinder and Deaton.
In the next section, a brief history of the random walk hypothesis of asset prices is presented.
This fact surprises many economists because a violation of the random walk hypothesis necessarily implies that price changes can be forecast to some degree.