Abstract:
According to Zordan (2005) and Ologunde, Elumilade and Asaolo (2006), share market and or stock market (Spyrou, 2001) are significant towards ensuring long-term commitment to real capital of a specific economy (mature market economy, emerging market economy or developing market economies). As a result, understanding level of efficiencies of measurements of stock and how it relates with interest rates is critical aspect to investors (Uddin & Alam, 2007), policy makers (Shiller, 1989) and other external stakeholders (Choi, Elyasiani & Saunders, 1996) who are documented to be key drivers and surety to long-term real capital in a specified economy. identification of relationship between interest rates and stock returns (for instance how hedged financial intermediaries and unhedged financial intermediaries demonstrate dependence on independence on interest rates; role of excess risk premia on stock returns, role of interest rates on stock market capitalization, market volatility of returns with respect to variation of interest rates, time-varying risk premia effect on stock returns, influence of interest rate differential on volatility of returns and how variation of nominal contracting on stock returns are influenced by stock returns).
