... Financial forecasting The seminal study of Meese and Rogoff (1983) reveals that structural models cannot outperform a simple random walk model in forecasting exchange rates. Subsequent studies employing linear models have also concluded that macroeconomic fundamentals generally contain little...

...@deakin.edu.au © Emerald Group Publishing Limited 2007 Stock markets Stock prices Stock returns Financial forecasting Stock market efficiency implies that prices respond quickly and accurately to relevant information. A random walk process characterizes an efficient stock exchange, which...