Information In The African Markets Bolstering Conventional Indices; A Review Of The Theory And Empirical Evidences

Abstract

The primary goal of this research is to determine whether purchasing a benchmark collection can yield inferior risk/return attributes compared to using the theory of modern portfolios (MPT), or Markowitz, on optimized portfolios. Putting together an investment strategy that outperforms the market over the long term should be the ultimate objective. Finding the way any one of these methods stacks up against the others in the context of producing better results based on utilizing returns and decreasing risks is crucial. Furthermore, it looks at how diversification can be used to minimize risk and maximize gets back on the Africa Stock Trade. Data on the five (5) belongings (organizations) that were selected from different categories by the Nigerian exchanges on a regular ending basis was utilized.