I.

Introduction

To determine the relevance of the given topic we need to define what is and what the goals of empirical research are. An empirical research is a scientific study which is based on facts. Any scientific research starts with the collection, classification and generalization of the facts. The concept of "fact" has the following major meanings: 1 !ome fragment of reality, objective events, the results that based on either to the objective reality ""facts of reality" , or to the realm of consciousness and #nowledge ""facts of consciousness" $ % ' &nowledge of any event, phenomenon, which credibility is proved$ Any assumptions or suggestions that fi(ing empirical #nowledge which received during e(periments and observations. The internal structure of empirical level is formed into two sublevels: a b )irect observation and e(periments which result are referred to these observations$ *y means of cognitive procedures, transition from observations to empirical dependences and facts is carried out. The activity+based nature of empirical research at level of observation is most distinctly shown in situations when observation is carried out during real e(periment. *y tradition, the e(periment is opposed to observation which is out of e(periment. ,et-s note that a core of empirical research is an e(periment . test of the studied phenomena in controllable and manageable conditions. The distinction between an e(perimentation and observation is that e(perimental conditions are controlled and managed, but in observation the processes are given based on the natural course of events. /ithout denying specifics of these two types of cognitive activities, it is necessary to pay attention to their common generic features. 0irst of all we need to consider in more detail what the feature of e(perimental research as practical activity is. 1(perimental wor# is a specific form of natural interaction, and interactive
1

fragments of the nature in the e(periment always appear as objects with functionally allocated properties. This term paper addresses such e(perimental research activities for three &aza#hstan big companies based on the analysis of 2apital Asset 3ricing 4odel. At the present time the concept of 2apital Asset 3ricing 4odel is the #ey to corporate finance, as it allows giving 5uantitative assessment to the investment and credit ris# of the owners of capital of company in terms of profitability and building the adoption of effective investment and financial decisions based on this assessment. A. Objective The main goal of this term paper is e(periments on the application of the concept of 6ris#+ return7 and to determine its suitability due to changes in country ris# and mar#ets. The object of the term paper is three &aza#hstan companies which are listed on ,ondon !toc# 1(change that are, &aza#hmys plc, 89A:&4;<A: ,,3 and &az4unai=as 13 B. Scope and source of data The scope of the term paper covers mainly the estimation and interpretation of regression e5uation based on 2apital Asset 3ricing 4odel of three &aza#hstan major companies covering some major empirical tests. All necessary data for ma#ing regression analysis of three &aza#hstan companies is retrieved from yahoofinance.com. C. Methodology 4ethodology part involves trend analysis of three companies over last three years and comparative analysis of obtained results to the available industry average figures by use of regression e5uation, as regression e5uation are useful tool to predict and forecast

D. Limitations

>ne of the main limitations of this paper is an absence of necessary data which may result in inaccuracy of estimations. 4oreover, little information is available to the general public regarding closing price of stoc#s in national currency for &aza#hstan oil and gas sector. All these factors served as challenge for the research group to ma#e a careful analysis.

II.

Concept, essence and purpose of the CAPM

2apital Asset 3ricing 4odel "2A34 + model of an assessment of profitability of financial assets which serves a theoretical basis for a number of various financial technologies on management of profitability and the ris#, applied at long+term and medium+term investment on assets.