Evaluating the capital asset pricing model methodology in Uzbekistan companies

Bunyod Usmonov

GREEN ECONOMY AND DEVELOPMENT, 2025, vol. 3, issue 6

Abstract: This article evaluates the applicability of the Capital Asset Pricing Model (CAPM) in the context of Uzbekistan'sevolving financial market. While CAPM serves as a foundational framework for linking risk and expected return in financialtheory, its underlying assumptions often diverge significantly from the realities of emerging economies. This studyexamines the theoretical underpinnings of CAPM, reviews academic criticisms, and analyzes the specific challengesposed by Uzbekistan's unique market characteristics, including its ongoing reforms, market structure, and data availability.A conceptual framework for empirical analysis is presented, outlining expected findings based on existing literature onemerging markets, given the current limitations in accessible granular data. The analysis concludes that the direct,unadjusted application of CAPM in Uzbekistan is likely to yield unreliable results due to systematic violations of its coreassumptions and difficulties in parameter estimation. The article suggests that while CAPM provides a useful theoreticallens, practical application necessitates substantial adjustments or the consideration of alternative, multi-factor models.Furthermore, it highlights key areas for future research and policy recommendations aimed at fostering a more mature,transparent, and efficient capital market in Uzbekistan

Keywords: CAPM; Uzbekistan; Emerging Markets; Asset Pricing; Financial Market; Tashkent Stock Exchange; Systematic Risk; Beta; Market Efficiency; Financial Reforms (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://yashil-iqtisodiyot-taraqqiyot.uz/journal/index.php/GED/article/view/6174 Abstract page (text/html)
https://yashil-iqtisodiyot-taraqqiyot.uz/journal/i ... e/download/6174/4441 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:teu:ged000:v:3:y:2025:i:6:id:6174

DOI: 10.5281/zenodo.15788075

Access Statistics for this article

More articles in GREEN ECONOMY AND DEVELOPMENT from "Ma'rifat-Print-Media" LLC, Tashkent State University of Economics
Bibliographic data for series maintained by Xayrulla ().