THE EFFICIENCY OF THE CAPITAL MARKET IN RESPONSE TO MACROECONOMIC FACTORS: A QUANTITATIVE ANALYSIS OF SHARES, BONDS, AND DERIVATIVES

Abstract

This research paper examines the efficiency of capital markets in response to macroeconomic factors through a quantitative analysis of shares, bonds, and derivatives. Utilizing a sample of 250 respondents, the study employs the Likert scale to capture subjective perceptions on market efficiency and the impact of macroeconomic changes. Factor analysis identifies underlying dimensions that group statements together, and comparative analysis examines differences across financial instruments. The findings reveal that shares are highly sensitive to GDP and unemployment rates, bonds respond directly to interest rates and inflation, and derivatives exhibit responsiveness to a broader range of macroeconomic factors. Qualitative insights from financial analysts, investors, and economists support these quantitative findings. This integrated methodology provides a comprehensive understanding of how macroeconomic shifts influence market efficiency, offering valuable insights for investors, policymakers, and financial analysts.