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A Comparison of Stock Market Efficiency of the BRIC Countries

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DOI: 10.4236/ti.2010.14029    7,317 Downloads   17,498 Views   Citations

ABSTRACT

This article compares the stock market efficiency of Brazil, Russia, India and China (commonly referred to as BRIC). The profitability of trading rules associated with the Simple Moving Average (SMA), the Relative Strength Index (RSI), the Moving Average Convergence Divergence (MACD) and the Momentum (MOM) are evaluated. It is found that these indicators are most profitable in the Russian stock market. The Brazilian stock market is found to be the most efficient market among the BRIC. An explanation for such a discrepancy is provided.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

T. Chong, S. Cheng and E. Wong, "A Comparison of Stock Market Efficiency of the BRIC Countries," Technology and Investment, Vol. 1 No. 4, 2010, pp. 235-238. doi: 10.4236/ti.2010.14029.

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