Risk-Return Trade-off in Emerging Markets:Evidence from Dhaka Stock Exchange Bangladesh
This paper attempts to measure the risk and return relationship in Dhaka Stock Exchange (DSE). The study reports a statistically significant positive relationship between risk and return both at the individual security level and at the portfolio level, confirming the theoretical predictions and em...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
University of Wollongong
2015-03-01
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| Series: | Australasian Accounting, Business and Finance Journal |
| Subjects: | |
| Online Access: | http://ro.uow.edu.au/aabfj/vol9/iss1/6 |
| Summary: | This paper attempts to measure the risk and return relationship in Dhaka Stock Exchange (DSE). The study
reports a statistically significant positive relationship between risk and return both at the individual security
level and at the portfolio level, confirming the theoretical predictions and empirical findings on this issue in
developed markets. Although portfolio risk and returns are found to be significantly positively related in
general, some inconsistencies were revealed in the context of relative risk for high risk portfolios, suggesting
the existence of some anomalies or mispricing in high risk assets. These findings have important implications
for investment decisions at the DSE in that the investors may be able to create profitable investment strategies
using the mispricing information. |
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| ISSN: | 1834-2000 1834-2019 |