| dc.description.abstract | The study examines the effect of investment strategies on stock returns at the Nairobi
Securities Exchange by determining if there was significant difference between the mean
return from different strategies employed by investors from January 2007 to December
2013. A descriptive study on closing prices of twenty (20) companies listed at the NSE
was undertaken by computing the monthly mean returns for five (5) technical analysis
strategies and testing if the returns where significant from the monthly mean return of
Buy and Hold strategy. The five (5) technical analysis used were Variable Moving
Averages (VMA) 1,50; 1,150; 1,200; 2,200 and 5,150,where, 1, 2, 5 and 50, 150 ,200
represented the short and long moving averages respectively and were used to generate
buy and sell signals The study conclude there was no significant difference between the
mean returns generated by the technical analysis (VMA) and the mean returns derived
from the B-H strategy at 5% significant level and therefore the investment strategy used
by an investor did not have significant effect on returns. The study recommends focus on
long term investment as no amount of time spent on research on best performing strategy
will earn the investor excess return. | en_US |
