The main goal of each investigation is achieving more return. Investigators pay attention to many characters, about stocks which are accepted in stock exchange. Proportion of price to earning ratio, risk and return are these characters which are important for investigators when they invest. This research consider the relation between proportion of price to earning ratio and stock return and risk in all accepted companies in stock exchange of valuable documents of Tehran.
In this research 2 hypotheses studied:
1. There is a logic relationship between proportion of price to earning ratio and stock return.
2. There is a logic relationship between proportion price to earning ratio and adjusted stock return.
In this study statistical society is 100 accepted companies in stock exchange of valuable documents of Tehran. Considered companies were active, in stock exchange of valuable documents of Tehran for 5 years, since beginning of 1393 to the end of 1397, continuously and their financial year ending was and of esfand. In this research proportion of price to earning ratio is as on independent variable and stock return and adjusted stock return are dependant variables.
The result of this research shows that there is no logic relation between proportion of price to earning ratio and with stock return and adjusted stock return. So investigators should pay attention to other variables to invest.