A study on risk-return trade-off among the firms listed in the Philippine stock exchange composite index for the period covering 1995 to 1997

• Main Author: Abanador, Mary Stephanie M.
• Format: text
• Language: English
• Published: Animo Repository 1998
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/16523
• Institution: De La Salle University

The purpose of this paper is to verify whether the firms listed in the composite index really do provide significant returns for investors. In order to verify this, the proponents use the Security Market Line (SML) to see whether the firms in the composite index provide greater returns for the risk taken. To further verify this, the proponents tested the data using the t-test to see whether the firms above and below the SML have any significant difference. The period covered were from 1995 to 1997 of stock returns on a monthly basis. From the results of the study, the proponents found out that the data was inconclusive and thus further study is recommended. The proponents further suggest that a longer time period and additional variables be used. Another statistical tool may be useful to verify the hypothesis.