Journal of Risk Analysis and Crisis Response

Volume 5, Issue 1, April 2015, Pages 31 - 46

Non-Diversifiable Risk in Investment Portfolios --- an Aid to Investment Decision Making

Authors
Emma Anyika
Corresponding Author
Emma Anyika
Received 1 January 2015, Accepted 5 February 2015, Available Online 1 April 2015.
DOI
https://doi.org/10.2991/jrarc.2015.5.1.3How to use a DOI?
Keywords
Non-diversifiable risk, Diversifiable risk, GARCH, portfolio
Abstract
estimators of diversifiable risk and portfolio expected returns to reflect normal market conditions. GARCH (General Auto - Regressive Conditional Heteroskedasticity) models are then used to make forecasts of given time series, from which future predictions of Non - Diversifiable risk, Diversifiable risk and portfolio expected returns are made. The required investment decisions are then made. In making investment decisions several factors are considered. These include profits, dividend yield, price earning ratios, and expected future performance of financial institutions. This paper has considered expected future performance of financial institutions. In particular the paper derives a method of determining non - diversifiable risk in investment portfolios that enables investors and investment managers make viable investment decisions. This study is expected to improve the accuracy of predicting future expected performance of financial institutions. Investment analysts can now rely on the predictions to make good investment decisions.
Open Access
This is an open access article distributed under the CC BY-NC license.

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Journal
Journal of Risk Analysis and Crisis Response
Volume-Issue
5 - 1
Pages
31 - 46
Publication Date
2015/04
ISSN (Online)
2210-8505
ISSN (Print)
2210-8491
DOI
https://doi.org/10.2991/jrarc.2015.5.1.3How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - JOUR
AU  - Emma Anyika
PY  - 2015
DA  - 2015/04
TI  - Non-Diversifiable Risk in Investment Portfolios --- an Aid to Investment Decision Making
JO  - Journal of Risk Analysis and Crisis Response
SP  - 31
EP  - 46
VL  - 5
IS  - 1
SN  - 2210-8505
UR  - https://doi.org/10.2991/jrarc.2015.5.1.3
DO  - https://doi.org/10.2991/jrarc.2015.5.1.3
ID  - Anyika2015
ER  -