Chinese Business Review (ISSN 1537-1506) Vol.14, No.6, 2015 (original) (raw)

The paper discusses market inefficiency in stock trading, emphasizing the behavior of feedback traders who respond to past stock returns rather than future dividends. It explores the application of the Vector Autoregressive (VAR) model in assessing the relationship between risk and return in the Dhaka Stock Exchange (DSE), highlighting a scarcity of studies in this area, especially during the financial crises of 2011-2013. The VAR model's capability in forecasting and structural analysis makes it a pivotal tool for understanding dynamics within financial time series.