Ex4.Efficient Market Hypothesis Weak form of EMH states that EY1)=E(Y) A simple way to test EMH Y=do+Eay-j+tr i= EMH implies H0a1=02=..=ap=0. If we fail to reject Ho,does EMH holds? Econometrics 15-Zhuxi 15Econometrics 15 - Zhuxi 15 Ex4. Efficient Market Hypothesis  1    0 1 0 1 2 0 Weak form of EMH states that | . A simple way to test EMH . EMH implies : ... 0. If we fail to reject H , does EMH holds? t t t p t j t j t j p E Y I E Y Y Y H                  