Risk and industrial classification in the Nairobi Stock Exchange
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Date
2008-11Author
Letaro - James, Lokini
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The objective of the research paper was to determine the association between the risk and the
theory of market segmentation in the NSE specifically the Industrial Classification of MIMS.
Risk considerations are critical in all investor's decisions at both individual and corporate
levels.
In order to achieve the above objective, the study set out to investigate whether the returns from
the industrial classes of MIMS were significantly different from the market returns given the
prevailing conditions during the period of study.
The results from the study indicated that industrial classification at the NSE may have not taken
risk into consideration while subdividing the market given the fact that all the industrial classes
were not significantly different from the market.
The research noted that the conclusions drawn from the study were subject to limitations such
as unique factors affecting risk, change in management, strikes, expansions and the sample size
which were not empirically tested.
Sponsorhip
University of NairobiPublisher
School of Business, University of Nairobi