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VOL. 6, ISSUE 3 (2024)
Systematic and unsystematic risk and stock return in commercial Banks of Nepal
Authors
Pratima BK
Abstract
The purpose of this study is to determine the effect of systematic Risk
and unsystematic Risk on expected rate of return of commercial banks in Nepal.
The study was conducted using descriptive and causal research design collecting
the data from mid-July 2013 to mid-July 2022 from ten commercial banks. The
data collected from ten randomly selected commercial banks was processed and
analyzed using the E-Views 2012. The result of random effect model revealed
that there is a very weak negative correlation between the rate of return and
systematic risk. This suggests that as systematic risk increases, the rate of return
tends to decrease slightly, although the relationship is weak. The study also
revealed systematic risk has significant negative impact of on the expected
rate of return. Unsystematic risk has a positive impact on expected rate of
return.
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Pages:7-12
How to cite this article:
Pratima BK "Systematic and unsystematic risk and stock return in commercial Banks of Nepal". International Journal of Finance and Commerce, Vol 6, Issue 3, 2024, Pages 7-12
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