Comparable Approach to the Theory of Efficient Markets: A Modified Capital Asset Pricing Model for Maritime Firms

Abstract

After revieving capital markets efficiency theories and capital asset pricing models, develops an approach that compares the relative efficiency levels of different stock markets. Presents empirical applications, first appraising the efficiency of the Istanbul Stock Exchange in comparison with other stock exchanges around the world. Next, by calculating the potential change in certain parameters that define the efficiency level, calculates the effect that new sector public offerings the ISE would have on the exchange's comparable efficiency level.

Keywords: efficient market, stock exchanges, maritime industry

JEL Classification: G12, G14, G15