Abstract
The aim of the research is to demonstrate the appropriateness of the capital asset pricing model (CAPM) for use in the Iraqi stock market, and whether it has an impact on the market value of stock prices, as the research sample consisted of (37) companies distributed over (6) economic sectors (banking sector, the industry sector, the hotel and tourism sector, the services sector, the insurance sector, the agricultural sector) for companies listed on the Iraq Stock Exchange for the period from (2011-2020), A set of financial and statistical methods (SPSS.V23, Eviews12, Microsoft Excel 10) were adopted to analyze data and test the validity of hypotheses, The research reached a set of conclusions, the most important of which is the existence of an inverse relationship between the capital asset pricing model (CAPM) and the market value of stock prices, which means that the higher (return and risk) the lower the market value of stock prices with it, and the research concluded with a set of recommendations, the most important of which is that companies benefit from the results And the research that showed the extent of the model’s ability to estimate the market value of stock prices, and thus its investment operations can be built in the financial market under this model, and the need for companies to seek the assistance of experts and economic and financial analysts to follow up and analyze the movements of the market value of stock prices because they are unstable in light of Iraq’s adoption of the economy rent in order to provide solutions that can help companies in the event of an economic crisis in the country.
