Authors: Omuemu Stanley Osasere & Hambolu Victor Olufunsho
Journal: Kogi Journal of Management
This study examines the random walk hypothesis on security returns in the Nigeria. The primary objective was to test random walk hypothesis on security returns in the Nigeria capital market.This study made use of annual data collected from the Nigerian stock exchange (NSE) between 1986- 2017. However, in order to validate the random walk theory in the Nigeria bourse, unit root test was adopted and the hypothesis was tested at a critical value of 5% and 10% respectively. The findings from the analysis reveal that the Nigeria capital market is currently nonrandom. This implies that and participant can outperform the market with past return if they can efficiently allocate their asset. We therefore recommended that investors should put into consideration the trend of movement of returns in other to maximize their portfolio.