DSpace
 

KNUSTSpace >
Theses / Dissertations >
College of Arts and Social Sciences >

Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/8681

Title: Construction of optimal portfolios of selected companies on the Ghana Stock Exchange
Authors: Mevemeo, Eric
Issue Date: 12-Apr-2016
Abstract: A portfolio is a collection of financial assets consisting of investment tools such as stocks, bonds, gold, foreign exchange, asset backed securities, real estate certificates, bank deposits, etc. which are held by a person or group of persons, companies, governments etc. In Ghana, constructing optimal portfolios with standardized optimization still remains a myth. In this paper, we analyse the estimated mean returns and standard deviation of thirty-two (32) listed companies on the Ghana Stock Exchange and select five stocks to generate ten optimal portfolios utilising Matlab based on the Markowitz mean-variance analysis. Historical monthly stock prices and dividend per share from 2011 to 2013 were used. Historical monthly stock prices and dividend per share from 2007 to 2008 of the five selected stocks in addition to their data from 2011 to 2013 were used in generating the ten optimal portfolios. The study revealed the best performing sector is the agriculture sector while the information and communication technology and mining sectors had negative mean returns for the years analysed. The study also revealed that, ideally, a risk-lover investor should invest all of his/her funds into buying the stocks of SCB. A risk-averse investor should invest 69.60%, 16.41%, 0.40% and 13.96% of his/her funds into buying stocks of FML, SCB, SPL and MLC correspondingly. While a risk-neutral investor is free to invest in any of the ten optimal portfolios.
Description: A Thesis submitted to the Department of Accounting and Finance, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirements for the degree of Master of Business Administration (Finance Option)
URI: http://hdl.handle.net/123456789/8681
Appears in Collections:College of Arts and Social Sciences

Files in This Item:

File Description SizeFormat
MEVEMEO ERIC.pdf960.71 kBAdobe PDFView/Open

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.

 

Valid XHTML 1.0! DSpace Software Copyright © 2002-2010  Duraspace - Feedback