The efficient markets hypothesis (EMH) postulates that market prices fully reflect all available information. The momentum effect, the acceleration of a security’s price or volume, is one of the anomalies of financial markets that challenge the validity of the EMH. Momentum in securities...

The EMH (Efficient Market Hypotheses) is one of the most incessant and respected theories in finance, yet it still comes under heavy criticism. The EMH has been based on an earlier theory that the market prices follow a random walk, hence they are unpredictable. For the purpose of the research,...

This paper analyzes stock index reactions to interest rate actions by the FOMC. Unlike previous analyses this study utilizes macro-economic indicators and accounts for pre-decision market expectations. Results indicate significant reaction of the stock market to the actions of the FOMC...