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Excerpt from The Behavior of European Stock Markets
This brief review summarizes most of the existing literature in this area of modern capital theory. This limited evidence tends to suggest that European capital markets may tend to behave differently from the American market. However any serious investigation of that topic should deal not only with market indices and aggregates but with a representative number of indi vidual securities listed on those markets.
After a short description of the European markets and of the data, the random walk hypothesis will be investigated in section II applying serial correlation tests to each European market. Those tests will be discussed and their results compared with the empirical evidence presented for the American market.
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