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Relevance of Net Asset Value (NAV) in Determining the Volatility of Stock Returns: A Study on Dhaka Stock Exchange
International Journal of Finance and Banking Research
Volume 2, Issue 1, February 2016, Pages: 7-12
Received: Jan. 21, 2016; Accepted: Jan. 25, 2016; Published: Feb. 4, 2016
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Authors
Md Saiful Islam, Department of Business Administration, German University Bangladesh, Gazipur, Bangladesh
Md Lutfor Rahman, Department of Business Administration, Northern University Bangladesh, Dhaka, Bangladesh
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Abstract
This research paper investigates the relevance of NAV per share in influencing the volatility of share prices. Standard deviation has been considered as the measurement scale of volatility. Besides NAV, the other variables considered include P/E ratio, face value and market lot size. Using 92 companies for the period between 2000 to 2009, this research found NAV per share has significant impact in determining the market volatility. Unlike what happened in the Dhaka Stock Exchange during the years between 2006-2010, changes in the face value and the market lot size should not have any impact in determining the market volatility.
Keywords
NAV, Market Lot Size, Share Face Value, Stock Market Volatility, DSE
To cite this article
Md Saiful Islam, Md Lutfor Rahman, Relevance of Net Asset Value (NAV) in Determining the Volatility of Stock Returns: A Study on Dhaka Stock Exchange, International Journal of Finance and Banking Research. Vol. 2, No. 1, 2016, pp. 7-12. doi: 10.11648/j.ijfbr.20160201.12
Copyright
Copyright © 2016 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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