IS PAKISTAN STOCK EXCHANGE A TRUE REFLECTOR OF ECONOMIC REQUISITE?
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Keywords

Stock Market
Returns
EMH
APT
Financial health

How to Cite

Naeem, M., & Sadaf Mustafa, S. M. (2020). IS PAKISTAN STOCK EXCHANGE A TRUE REFLECTOR OF ECONOMIC REQUISITE?. Global Journal for Management and Administrative Sciences, 1(2), 1–14. https://doi.org/10.46568/gjmas.v1i2.20

Abstract

Stock market returns, another indicator of financial health of stock market and investors as well. Deviations in returns may vary country to country, investor to investor and market to market. There are many causes behind deviations in returns such as micro and macro variables. This study is aimed to identify causes behind stock market deviation theoretically and practically. Time span of 2002-2018 is examined as a sample year for practical analysis while literature on implementation of economic theories is considered for theoretical analysis. Statistical software EVIEWS is employed on the driven equation to conclude practical inferences by drawing critical region and sign of coefficient. Results indicates that EMH and APT theories exist in Pakistan while CAMP approach is invalid for Pakistan Stock Exchange. Furthermore, practically stock returns of Pakistan are not true reflector of economic requisite of Pakistan.

https://doi.org/10.46568/gjmas.v1i2.20
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Copyright (c) 2020 Mahpara Naeem, Dr Sadaf Mustafa