Validity of capital asset pricing model in Pakistan: Evidence from Karachi Stock Exchange | Zendy

Syed Ali Raza | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Open Access

Validity of capital asset pricing model in Pakistan: Evidence from Karachi Stock Exchange

Author(s) -

Syed Ali Raza

Publication year - 2011

Publication title -

african journal of business management

Language(s) - English

Resource type - Journals

ISSN - 1993-8233

DOI - 10.5897/ajbm11.2105

Subject(s) - stock exchange , capital asset pricing model , economics , stock (firearms) , financial economics , econometrics , business , finance , geography , archaeology

This study investigates the validity of Capital Asset Pricing (CAP) Model in Karachi stock exchange (KSE). The data of 387 companies of 30 different sectors on monthly, quarterly and semiannual basis are used. The Paired sample t- test is applied to find the difference between actual and expected returns. Results show that capital asset pricing model (CAPM) predict more accurately the expected return on a short term investment as compare to long term investment. It is recommended that the investors should more focus on CAPM results for short term as compare to long term investments in KSE.

The content you want is available to Zendy users.

Already have an account? Click here to sign in.

Having issues? You can contact us here

Accelerating Research