INFLUENCE OF MARKET RETURN ON THE PORTFOLIO RETURNS OF COMPANIES IN THE MIMS AT NSE
DOI:
https://doi.org/10.47941/ijf.59Keywords:
Market return, Portfolio Returns, companies in the MIMSAbstract
Purpose: The purpose of this study was to determine the influence of market return on the Portfolio returns of companies in the MIMS at NSE
Methodology: The study adopted descriptive survey. The study population study was composed of the forty seven firms within Main Investment Market Segment (MIMS), which form the four sectors of Nairobi Securities Exchange (NSE). A census was carried out and so the research covered 45 companies, listed in the MIMS of NSE for the period 1st January 2009 to 31st December 2013. The study used the panel data analysis where pooled OLS model was used and diagnostic tests carried out. Since the tests failed to meet the assumptions of OLS, the fixed and random effects models were used.
Results: The study findings revealed that portfolio return and market return were positively (r= 0.565) and significantly (p-value<0.000) correlated and further the random effects panel regression results indicated a positive (β=3.38) and significantly (p-value<0.05) related to market return and portfolio return.
Policy recommendation: The study recommended that the investors who would want to maximize the returns from their portfolios should invest when the market return is favorable. This would ensure that they derive maximum returns from their investmentsDownloads
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