The Performance of sector concentrated versus diversified equity portfolios in Kenya

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dc.contributor.authorOkumu, Reginald
dc.date.accessioned2018-11-06T05:19:12Z
dc.date.available2018-11-06T05:19:12Z
dc.date.issued2018
dc.descriptionSubmitted in partial fulfillment of the requirements for the Master of Business Administration at Strathmore Universityen_US
dc.description.abstractThe purpose of this study is to compare the performance of sector concentrated equity portfolios versus diversified equity portfolios in Kenya. Sector concentrated equity portfolios are created when all funds available are invested in a particular segment of the economy to maximize returns. On the hand, diversified portfolios are created when funds available are invested in different sectors of the economy to minimize risks. The data used to construct the portfolios in this study is from 66 NSE listed firms classified into 8 sectors. NSE 20 Share Index is used as the benchmark index while the 91-Day Treasury bill is adopted as the risk free rate. The study period is from 2002 to 2016. Sharpe’s Single Index Model is used to construct diversified equity portfolios while CAPM and matrix algebra are used to construct sector concentrated equity portfolios. Sharpe ratio is used as performance measure to determine which portfolio is better performing. In this study, the higher the Sharpe ratio the better the portfolio performance. The study concludes that diversified equity portfolios perform better than sector concentrated equity portfolios over time. The study further concludes that the out performance is time varying.en_US
dc.identifier.urihttp://hdl.handle.net/11071/6098
dc.language.isoenen_US
dc.publisherStrathmore Universityen_US
dc.subjectBest ideaen_US
dc.subjectCapital asset pricing modelen_US
dc.subjectConcentrated portfoliosen_US
dc.subjectDiversified portfoliosen_US
dc.subjectSharpe ratioen_US
dc.subjectSingle index modelen_US
dc.titleThe Performance of sector concentrated versus diversified equity portfolios in Kenyaen_US
dc.typeThesisen_US
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