Risk Management and Portfolio Analysis in the Capital Market in Nigeria

Abstract

This research work is entitled Risk Management and Portfolio Analysis in the Capital Market in Nigeria”. This work is embarked on with the purpose of examining critically risks with in the context of financing investment decisions. There is an attempt at appreciating the various criteria for measurement and managing investment risks and its possibility of reduction and to show the effects of changes in market on risks and return. Findings in the study have been able to indicate that investment risks can be identified, diversified portfolio does not reduce/eliminate all risks, macro-economic factors are responsible for the difficulties in diversifying market risks. From the findings, it is recommended that a conducive platform should be created for capital market investment; speculative decisions are to be taken into consideration in returns. There is a need to invest in securities and combinations that are perfectly negatively correlated and portfolio combinations should be correctly balanced for two or more assets, with the same expected return.

Keywords: Risk, Management, Portfolio analysis and capital Nigeria Market