Comparative analysis of the performance of equity securities and treasury bonds in Tanzania’s capital market
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Date
2014
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Journal ISSN
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Publisher
University of Dar es Salaam
Abstract
The research sought to find a solution to the problem related to the performance of Equity Securities and Treasury Bonds in the Tanzanian Capital Market in the context of Risk Return Trade-Off Theory. The methodology involved a quantitative deductive approach and a comparative research strategy. Secondary data were collected and analyzed using descriptive statistics where two hypotheses were tested using the Z- and F – Test Statistics at a 5% level of significance. Findings from data analysis confirmed the Risk Return Trade-Off Theory in that, mean return from Equity Securities for the period from 2008 – 2013 was found to be 21.53% with average risk of 41.59%. On the other hand; the mean return from Treasury Bonds for the period from 2002 to 2013 was found to be 13.7% with average risk of 38.89%. Risks were determined from the standard deviation of each respective portfolio after analysis. However; testing the two hypotheses on returns and risks of the two portfolios at 5% level of significance revealed that there were no significant statistical differences between returns and risks of Equity Securities and Treasury Bonds on the Tanzania’s Capital Market. In this regard, it is recommended that efforts should be put-forth to improve the efficiency of the Tanzanian Capital Market especially strengthening the Equity Securities portfolio
Description
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HG4523T34H36)
Keywords
Capital market, Government securities, Tanzania, Bonds
Citation
Hanga, B.G (2014) Comparative analysis of the performance of equity securities and treasury bonds in Tanzania’s capital market,Master dissertation, University of Dar es Salaam. Dar es Salaam.