Assessing and testing the Capital Asset Pricing Model (CAPM): a study involving KSE-Pakistan

Muhammad Ibrahim Khan; Noorul Mudassar Khan

Assessing and testing the Capital Asset Pricing Model (CAPM): a study involving KSE-Pakistan

Muhammad Ibrahim Khan * §

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zmariasmart

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Noorul Mudassar Khan

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iron.man7886

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sanaullahkk

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§ National Defence University Islamabad

Assessing and testing the Capital Asset Pricing Model (CAPM): a study involving KSE-Pakistan

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Abstract

The current research study tests the CAPM, (Capital Asset Pricing Model) in Pakistan’s stock market, Karachi Stock Exchange KSE. Capital Asset Pricing Model explains the links present between risk and return in efficient markets. Therefore the current study has focused on the calculation of Beta of ten companies registered on KSE, and actual and expected returns have been compared. The data analysis revealed the limited applicability of CAPM to the KSE, 100-index. Further studies may be conducted to check the applicability of the model, by taking a large sample of companies, especially in Pakistani stock exchanges.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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Not applicable for this article.

How to Cite This Article

Muhammad Ibrahim Khan, zmariasmart, Noorul Mudassar Khan, iron.man7886, sanaullahkk. . "Assessing and testing the Capital Asset Pricing Model (CAPM): a study involving KSE-Pakistan". Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 12 (GJMBR Volume 12 Issue B10).

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GJMBR Volume 12 Issue B10

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-B Classification FOR Code:150205 JEL Code: E22

G11

G12

Submission ReceivedDecember 11, 2011
Peer Review Double Blind
Handling Editor
Accepted January 1, 2012
Published January 15, 2012

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v1.2

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English

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Article Matrices

Total Score: 152

Country: Pakistan

Subject: Global Journal of Management and Business Research

Authors: Muhammad Ibrahim Khan, Maria Gul, Noorul Mudassar Khan, Bilal Nawaz, Sanaullah (PhD/Dr. count: 0)

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