Evaluation of the Stock Quote – Stochastic Approach, Market Efficiency and Technical Analysis

Authors

  • Vasile Brătian Faculty of Economic Sciences / Department Finance and Accounting, Lucian Blaga University of Sibiu, Romania
  • Claudiu Opreana Faculty of Economic Sciences / Department Finance and Accounting, Lucian Blaga University of Sibiu, Romania
  • Amelia Bucur Faculty of Sciences / Department of Mathematics and Informatics, Lucian Blaga University of Sibiu, Romania

Abstract

The paper presents, theoretically and practically, the evaluation of the stock quote using the stochastic technique, market efficiency and the technical analysis, and the object of the study is the stock quote of Electrica SA, listed on the Bucharest Stock Exchange. One of the current paradigms, in which the stock quote is evaluated, considers this to be a random variable of continuous type. Our developments are subject to this paradigm. We also consider the technical analysis of the stock quote used in the study, complementary to the stochastic calculation. Prior to the technical analysis is carried out a test of the weak-form market efficiency, required to justify such an approach. 

Keywords: stochastic calculation; market efficiency; technical analysis

JEL Classifications: C02, C13, G14, G17

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Published

2017-10-31

How to Cite

Brătian, V., Opreana, C., & Bucur, A. (2017). Evaluation of the Stock Quote – Stochastic Approach, Market Efficiency and Technical Analysis. International Journal of Economics and Financial Issues, 7(5), 307–316. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/5254

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