CAPM challenged: Unique risk found to impact stock returns in Pakistan.
The study looked at how well a financial model called CAPM works in Pakistan's stock market. They used data from top companies on the stock exchange and found that the model didn't hold up. The key conditions of the model were not supported, and they found that other factors besides market risk also affect stock returns. This suggests that the model may not be the best way to predict stock prices in Pakistan.