Abstract

The stock market, often known as the secondary market, is a venue for the transfer, purchase, sale, and circulation of stocks for listed firms and investors. There is a subtle relationship between the stock and the market, and market external factors influence the price of the stock. Thus, variations in stock prices can impact the profits of investors. Hence, the stock of Pfizer is the subject of this research. By analyzing the influence of the NASDAQ and DJLA on Pfizer stock prices. Determine the link between the two indices and the stock returns of Pfizer. Utilizing the Capital asset pricing model (CAPM) through regression analysis of the model and systematic Beta risk data constitutes the research methodology. The conclusion of the investigation is that the index influences the predicted portfolio return for investors. The relevance of this research is to demonstrate that investors can utilize the CAPM asset pricing model to evaluate portfolio returns. In addition, it explains the limitations and benefits of utilizing CAPM based on Pfizer stock data and provides investors with a reference for future usage of the modeling.

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