Risk–return relationship in the Finnish stock market in the light of Capital Asset Pricing Model (CAPM)
Hundal, Shab; Eskola, Anne; Tuan, Doan (2019)
Routledge, Taylor & Francis
All rights reserved. This publication is copyrighted. You may download, display and print it for Your own personal use. Commercial use is prohibited.
Julkaisun pysyvä osoite on
Hundal S., Eskola A., Tuan D., (2019). Risk–return relationship in the Finnish stock market in the light of Capital Asset Pricing Model (CAPM). , Routledge, Taylor & Francis.
The relationship between the risk and return has always been a topic of interest to investors and academics. Capital Asset Pricing Model (hereafter, CAPM) is one of the most important theoretical foundations in the field of finance. The current study examines, first, the relationship between return and risk in the context of the Finnish stock market, and second, to identify if the realized return of Finnish companies highlights over/under-performance. The findings indicate that the risk–return relationship has been working in sync and the stock return of sample firms have been observed to be less volatile than the market index.