Empirical evidence of CAPM model at pharmaceutical industry of DSE

Abstract

This research paper focuses on the discussion of the empirical proof of CAPM model on pharmaceutical trade and concludes the speed of comeback of stock of CAPM models. The capital quality valuation model is employed as tools for the comeback. The aim this paper is to search out the speed of comeback of stock of pharmaceutical trade through capital quality valuation model. To calculate the capital asset pricing I used 2 indexes from stock exchange, DSEX and DS30.The Capital quality valuation Model (CAPM) provides a balanced linear relationship between expected returns and quality risk. The aim of this study is to analyze the risk-return relationship at intervals the CAPM framework. The survey checked out whether or not CAPM may be a sensible indicator of Bangladesh's quality price. The amount 2019-2021 has been thought-about for this. The searches at CAPM during this study well-tried that the variables we have a tendency to took square measure still a great deal alive during this place with a major correlation with stock returns.