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 surgical operation for the Period 2008 2009 In 2008, the first tie of 2008 saw bottomdour upset counterbalance by 10.2% compared to a similar period in 2007 partly as a result of preparations for the Safaricom IPO and the pretend of repugn general elections results. Share pile on former(a) change magnitude by 1092.93% from end of first quarter 2008 to end of sec quarter 2008. The NSE share index and commercialiseplace Capitalization change magnitude by 7.05% and 57.5% respectively for a similar period. The grade 2009 registered sundry(a) performance in secondary securities intentness performance, as equities turnover declined by 45% to Kshs 57 matchless thousand thousand, from Kshs 103.5 billion recorded during the preceding period. Share volume however increased marginally to 4.26 billion from the previous categorys 4.26 billion, a 0.08% rise. Overall, the performance of the equity commercialize during the category was bear outish with the NSE 20 Index move by 36%. However during the second half of the year the market remained relatively bullish with the index closing at 3295 points compared to 3199 in January 2009, generally as a result of regenerate interest from hostile and institutional investors.

Problem Statement Stock market plays an classic 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 so improves the countrys economic efficiency. However, pullulate market is a volatile financial market, in which various! factors can shanghai the furnish that investors can gain from put in bloodlines. The unbelief 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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