Sectorial Analysis of the Risk-Return Characteristic of Quoted Stocks in the Nigerian Stock Exchange
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This study examines the risk-return dynamics of quoted stocks for the eleven sectors of the Nigerian stock exchange for the period of twenty one weeks March 2015 through July 2015. The study aimed at determining the sectoral risk and returns of the quoted stocks in the Nigerian Stock Market. Using the standard deviation and the mean analysis to estimate the risk and returns of the stocks, the result reveals that the size of the quoted stock risk and return are apparently different on sectoral basis as such they change differently but directly with the size of returns. The magnitude of the risk or return depends mostly on the peculiarity or otherwise of such sectors where the stocks are listed but not on the size of the firms. Therefore the study conclude that for an investor to take a rational investment decisions, it is sacrosanct for such investor or investors to know the risk return characteristics of stocks quoted on the various sectors of the Nigerian stock exchange.
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