dc.contributor.author | Mwatuwano, Aziza M | |
dc.date.accessioned | 2013-02-19T06:04:32Z | |
dc.date.available | 2013-02-19T06:04:32Z | |
dc.date.issued | 2012 | |
dc.identifier.uri | http://hdl.handle.net/11295/10152 | |
dc.description | An evaluation of the perfomance of islamically screened portfolios at the Nairobi Stock Exchange | en |
dc.description.abstract | There has lately been great interest in Islamic Finance in Kenya. Concerns have however risen
where investors fear that by investing Islamically, they risk getting lower returns from their
investments. This study therefore seeks to form an Islamic portfolio from the NSE and to
determine whether there exists any significant difference between the risk and returns of an
Islamic portfolio and a conventional portfolio at the NSE.
From a population of 47 companies from the NSE`s Main Market segment, the study formed an
Islamic portfolio of 20 companies. All the 47 companies were put through Islamic screens, 22
companies did not meet at least one of the screens. 5 of the companies that met the screens were
dropped in order to have the conventional portfolio and Islamic portfolio having an equal number
of constituent companies. Weekly risk and returns were calculated for the two portfolios. Sharpe,
Treynor and Jensen measures were also used to measure their performance. Z tests were then
conducted to check whether there is significant difference between the risk and returns of the
Islamic portfolio and the conventional portfolio.
Results showed that there was no significant difference between the risk and raw returns of the
conventional portfolio and Islamic portfolio. The results for risk adjusted returns were mixed; the
Sharpe measure was in favour of the Islamic portfolio while the Treynor ratio was in favour of
the conventional portfolio, both with significant differences. The Jensen measure was however
indifferent.
With more investors seeking to participate in the growing field of Islamic investments, this study
will provide important information to investors that can be used to provide an additional tool on
which investors can base their investment decisions and design a portfolio that suits their
respective objectives. | en |
dc.language.iso | en | en |
dc.subject | Islamic Finance | en |
dc.subject | Islamic Screens | en |
dc.title | An evaluation of the perfomance of islamically screened portfolios at the Nairobi Stock Exchange | en |
dc.type | Other | en |
local.publisher | School of Business, University of Nairobi | en |