An Analysis of the Stock Return and Exchange Rate Variation on Market Return of Pharmaceutical Industry in Pakistan 10492011 洪嘉聖.

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An Analysis of the Stock Return and Exchange Rate Variation on Market Return of Pharmaceutical Industry in Pakistan 10492011 洪嘉聖

SR=-0.1804+7.99XR+1.065Rm

CONCLUSION 1.stock returns equation shows that short-run changes in exchange rate have negative but significant impact on stock returns of pharmaceutical multinational of Pakistan. 2. market return index have positive but significant impact on short-term changes in stock returns. 3. firms that they need to establish operational hedging to reduce the exchange rate risk previous quarter is eliminated this quarter. exposure to a modest and bearable level.