An Analysis Of The Relationship Between Risk And R

AN ANALYSIS OF THE RELATIONSHIP BETWEEN RISK AND RETURN OF LISTED SECURITIES IN THE NAIROBI STOCK EXCHANGE 1.0 INTRODUCTION Stock exertion for the Period 2008 2009 In 2008, the first poop of 2008 saw bottomdour swage counterbalance by 10.2% compared to a similar period in 2007 partly as a result of preparations for the Safaricom IPO and the match of repugn general elections results. Share leger on early(a) change magnitude by 1092.93% from end of first quarter 2008 to end of sec quarter 2008. The NSE share index and commercialise Capitalization change magnitude by 7.05% and 57.5% respectively for a similar period. The grade 2009 registered sundry(a) performance in secondary securities manufacture performance, as equities turnover declined by 45% to Kshs 57 champion thousand thousand, from Kshs 103.5 billion recorded during the preceding period. Share volume however increased marginally to 4.26 billion from the previous classs 4.26 billion, a 0 .08% rise. Overall, the performance of the equity commercialize during the year was bear outish with the NSE 20 Index move by 36%. However during the second half of the year the mart remained relatively bullish with the index closing at 3295 points compared to 3199 in January 2009, for the most part as a result of regenerate interest from irrelevant and institutional investors.

Problem Statement Stock market plays an strategic role in stimulating economic growth of a country. It helps to channel fund from individuals or firms without investment opportunities to firms who guard them and thence improves the countrys economic efficiency. However, pullulate market is a volatil e financial market, in which various factors! can make the accrue that investors can gain from commit in phone lines. The suspense of reward from stock market is translated into risks that investors have to bear for investing in stocks. Since the return from investment in stock market is uncertain, knowing the risk and return nexus in the stock market will be crucial for investors to maximize their return and...If you want to get a full essay, coif it on our website: OrderEssay.net

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