The Relation between Risk and Expected Return of Manfa’at Sukuk

Risk and return are key concepts in financial science and are actually considered to be the two sides of the investment coin. Since Islamic finance instruments are emerging tools in Islamic countries, especially in Iranian capital market, identifying the risks of these instruments and, consequently, the expected return from investment by investors due to the risks associated with these tools is significant. Thus this study, through examining the risks associated with manfa’at sukuk, tries to examine the relationship between risk and return from manfa’at sukuk using factor models. In this paper, the model of the expected rate of return for manfa’at sukuk has been investigated while considering the risks of these securities. The statistical population of this research is the issued sukuk, which is based on assets, i.e ejareh and manfa’at sukuk in Iran’s modern financial tools market, from 1393 to 1397, whose data are available and accessible.