Testing Weak Form Efficient Market Hypothesis

Stock market efficiency is one of the important concept in capital markets to understand flow of working in capital markets. With the greater movement in investments across the international boarders owing to integration of economies of the world knowledge about the efficiency of developing markets is also obtaining greater importance. This study tested the hypothesis of random walk to determine the authenticity of the weak form market efficiency for the emerging and the biggest stock market of Pakistan named Karachi Stock Exchange.