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Research Article Open access CC BY 4.0

Effect of Capital Asset Pricing Model on Stock Prices

Dini Dinahastuti, Jajang Badruzaman, Euis Rosidah, Wursan

Asian Journal of Economics, Business and Accounting · pp. 1–11 · Published 13 Jan 2020

10.9734/ajeba/2019/v13i330172

Abstract

Capital Asset Pricing Model (CAPM) is one of the balance models that can be used to determine the magnitude of the relationship between risk and return obtained by investors so that it will help investors to avoid investment errors. This study aims to determine (1) capital asset pricing model, and company stock prices in the Nikkei 225 Index technology sector; (2) capital asset pricing model on the company's stock prices in the Nikkei 225 index technology sector. The technique of data collection is done through secondary data, namely data obtained from the study of documentation and literature. The method used is descriptive method with census approach method. The population and sample of this study were the technology sector companies of the Nikkei 225 Index in 2016-2018. There were 57 companies in 2016-2018. The data analysis technique used is panel data regression analysis with a ratio measurement scale. Based on the results of the research and the results of data processing, it is shown that (1) Capital Asset Pricing Model in the technology sector company Nikkei 225 Index shows fluctuating results each year and effective in determining efficient and inefficient stocks for investors to use in making investment decisions. The company's stock price in the technology sector. The Nikkei 225 index shows an increase in average stock prices each year; (2) Capital Asset Pricing Model has a significant positive effect on Stock Prices.

Capital asset pricing model stock price Nikkei 225

Cited by 1

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Raúl Alberto Cortés Villafradez, Edgar Ricardo Jiménez Méndez · Cuadernos Latinoamericanos de Administración · 2025

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