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The Efficiency o f China’s Stock Market
The simple return is frequently found in the literature before 1980, and the log
return has been popularly employed in the literature after 1980. The log return will
be applied in the empirical tests in this study. Unless otherwise specified, the
returns used from now on are log returns.
4.3 Categories o f random walk tests
The random walk was presented, in the previous section. If the price of the stock
behaves as a random walk, the market is an efficient market. It is beneficial to
compare this study with previous similar studies on many different markets;
therefore ...