The present study focused on one of the important South Asian nations-Sri Lanka-to examine the role of idiosyncratic volatility in asset prices. A four-factor model with idiosyncratic volatility was designed for capturing the market, size, value and idiosyncratic risk yields better than Fama and...

Chapter 1. Scope and Methodology of Econometrics -- Chapter 2. Random Walk Hypothesis: Random Walk Models -- Chapter 3. Geometric Brownian Motion -- Chapter 4. Efficient Frontier -- Chapter 5. Portfolio Optimisation -- Chapter 6. Introduction to Asset Pricing Factor Models: CAPM Multifactor...