Unsystematic volatility, returns and incorrect stock pricing

The overall purpose of this study is non-systematic volatility, returns and incorrect stock pricing. The spatial scope of this research was the companies listed on the Tehran Stock Exchange and the time domain was between 2011 and 2016. According to the systematic elimination method, 130 companies were selected as the research sample. Analysis of variance, F-Limer, Hausman and Lane-Levin tests were used as pretest and regression tests as post-test to confirm and reject the research hypotheses. The software used in this research for data analysis is Ives 8 software. The results showed that there is an inverse relationship between unsystematic risk and stock returns. Overpricing affects the relationship between unsystematic risk and stock returns. Kemner overpricing affects the relationship between unsystematic risk and stock returns.