Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 28, 2023 erstellt
Beschreibung:
Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory are two basic models for understanding the relationship between stock return and risk in assessing shares traded in the capital market. This study aims to understand whether CAPM or APT is better and more accurate in predicting the return of stocks traded in the Pakistan capital market. This study uses secondary data gathered from the official website of the Pakistan Capital Market. In the way to achieve the research objective, this study Wilcoxon signed rank test to verify which method is more accurate in predicting a stock return in Karachi Stock Exchange (KSE) 30 for the period of 2015 – 2019 which sample was taken from 14 companies by using a purposive sampling technique. The result of this study indicates that the APT method is more suitable and accurately used by investors in estimating the return of stocks that are registered in the Karachi Stock Exchange (KSE) 30