Abstract:
The purpose of the research paper is to examine that how risk influence the stock prices in
Pakistan. Two types of risk discussed in the study systematic risk and unsystematic risk. The
questionnaire based on seven different risk factor aspects to understanding the systematic and
unsystematic risk which areMarket Risk, Currency Risk, Purchasing power Risk, Interest
Risk, Business risk, financial risk and country risk. 28 questions haveused based on the 5
Likert scale. A total of 145 questionnaires have been distributed to collect the data on
investment banks and stock agents of Islamabad stock exchange. Regression, correlation and
ANOVA testing has been used to estimate the results on the SPSS software. The result found
that systematic and unsystematic risk factors are efficient and most significant variables that
influence the stock prices in Pakistan. Moreover the results and findings show that there is
positive significant relation of the systematic and unsystematic risk on the stock prices of
Pakistan.
