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AN ASSESSMENT OF THE RISK AND RETURN OF FRENCH COMMON STOCKS
Author(s) -
Hawawini Gabriel A.,
Michel Pierre A.,
Viallet Claude J.
Publication year - 1983
Publication title -
journal of business finance and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.282
H-Index - 77
eISSN - 1468-5957
pISSN - 0306-686X
DOI - 10.1111/j.1468-5957.1983.tb00435.x
Subject(s) - capital asset pricing model , risk–return spectrum , economics , systematic risk , common stock , financial economics , expected return , sample (material) , econometrics , geography , portfolio , context (archaeology) , chemistry , archaeology , chromatography
In this paper the relationship is examined between the average return and the risk of a sample of 144 French common stocks which traded continuously over the decade 1969–1979. Although it was found that a negative relationship existed between average return and systematic risk, sufficient evidence could not be gathered to reject the hypothesis that the pricing of French common stocks conforms to the Capital Asset Pricing Model. The nature and implications of the observed negative risk‐return trade‐off are discussed.