Macroeconomic (Economy Wide) Factors as Determinants of Equity Returns
This chapter builds upon the findings of chapter 5, which focused on the microeconomic factors affecting stock returns, and attempts to uncover the macroeconomic factors affecting stock returns of the industries analysed in this book. The use of risk measures derived from the market and the economy are appropriate for comparing risk profiles between industries under the assumption that markets are reasonably efficient. However, although a very interesting issue, the number of studies comparing risk across industries, in a macroeconomic context is limited both in number and in scope.
KeywordsInterest Rate Stock Return Term Structure Transportation Sector Electricity Industry
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