Salient objectives and aims of the intended research work include, but are not limited to:  The predominant purpose of this research is to analyze the impact of economic uncertainty in the cross-sectional pricing of individual stocks and equity portfolios of the European market since it’ll cover the developed stock markets of 17 countries and will usher existing and prospective investors to envisage what expected return should be and in which stocks to make the investment.  On top of that, measuring the impact of aggregate beta uncertainty on the future return along with the inclusion of control variables to perform bivariate portfolio sorts to analyze whether uncertainty beta is liable for differences in expected return other than well-known stock characteristics or risk factors is considered another objective of this research.  Whether investors care only about the mean and standard deviation of asset return and systematic risk or also on future uncertain events that can affect future return distribution will have to be answered.  This research aims at finding why and for which beta uncertainty decile investors demand extra return.

2024

2026