constancy assumption of classical linear regression (CLRM) model and allows exchange rate and interest rate volatility to evolve … conventional stock indices. Results: The findings show positive and statistically significant effect of interest rate volatility on … KSE-100, whereas KMI-30 remains unaffected by the same. Exchange rate volatility is found to be significant for both …

exchange rate variables such as the U.S. dollar exchange rate, etc. Second, we add exchange rate volatility as a control … volatility with an increase in return horizon. Consequently the ratio of firms with significant exposures increases with the … return horizons. Interestingly, the increase of exposure with the return horizons is faster for exposure to volatility than …