Preliminary communication
The Influence of Market Risk on Share Price Trends in the Republic of Croatia
Miroslav Gregurek
; University of Applied Science Baltazar, Zaprešić, Croatia
Mladen Čižmešija
Abstract
Market risk is the risk of macroeconomic factors that significantly affect all companies and all investments to varying degrees. This risk cannot be reduced or eliminated because it is affected by external factors such as; inflation, political events, terrorist attacks, interest rates, not affected by diversification. Market risk is most often calculated through the expected rate of return on investment in the CAPM model, where it is expressed by the Beta coefficient. This paper deals with the impact of market risk on stock return rates. The sample of research in this paper are the shares of several companies within the CROBEX10 index of the Zagreb Stock Exchange. Attention is paid to the semi-annual calculations of the beta coefficient and the required rates of return. In addition to the semi-annual ones, the annual and three-year calculations of one selected joint stock company will be presented.
Keywords
Market risk; Beta coefficient; required rate of return; CAPM model
Hrčak ID:
254121
URI
Publication date:
31.12.2020.
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