摘要：This paper investigates the influence of terrorist activities taking place in Pakistan on the KSE (Karachi Stock Exchange) for the period of 01/2005 to 12/2010 using the GARCH & GARCH- EVT to identify the relationship between these two variables;the study establishes that terrorist activities adversely affect the financial markets and in the case of KSE,it is a highly significant relation.The reason why the negative relationship exists is because of the foremost increase in the number of terrorism attacks in Pakistan.
