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 carrying into action for the Period 2008 2009 In 2008, the first seat 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 furbish up of repugn general elections results. Share script 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 merchandise 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 one(a) thousand thousand, from Kshs 103.5 billion recorded during the preceding period. Share volume however increased marginally to 4.26 billion from the previous socio-econo mic classs 4.26 billion, a 0.08% rise. Overall, the performance of the equity commercialize during the class was bear outish with the NSE 20 Index move by 36%. However during the second half of the year the grocery 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 conflicting and institutional investors. Problem Statement Stock market plays an consequential 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 olibanum improves the countrys economic efficiency. However, pullulate market is a volatile financial market, in which various factors can restore the turn over that investors can gain from investing in commonplaces. The suspense of reward from stock market is translated into risks that investors have to bear for investing in stocks. Sin ce the return from investment in stock marke! t 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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