American Journal of Mobile Systems, Applications and Services
Articles Information
American Journal of Mobile Systems, Applications and Services, Vol.1, No.3, Dec. 2015, Pub. Date: Sep. 19, 2015
An Empirical Study on the Return Distribution of the Mobile Network Companies in Malaysia Stock Market
Pages: 152-155 Views: 1819 Downloads: 837
Authors
[01] Lam Weng Siew, Centre for Business and Management, Department of Physical and Mathematical Science, Faculty of Science, Universiti Tunku Abdul Rahman, Kampar Campus, Perak, Malaysia.
[02] Lam Weng Hoe, Centre for Business and Management, Department of Physical and Mathematical Science, Faculty of Science, Universiti Tunku Abdul Rahman, Kampar Campus, Perak, Malaysia.
Abstract
Mobile network sector is one of the important sectors in Malaysia which provides the network communication services to the users. The investors can get the return through the investment of the mobile network companies which are listed in Malaysia stock market. However, the investors will be exposed to the risk of loss in the investment. The mean-absolute deviation model is a portfolio optimization model that has been applied in the past studies to construct the optimal portfolio which can achieve the positive return at minimum risk of loss. The objective of this paper is to study and determine the characteristic of the return distribution of the mobile network companies that listed in Malaysia stock market. Furthermore, an optimal portfolio that consists of the mobile network stocks is constructed by using the mean-absolute deviation model. The results of this study show that the return of the mobile network companies exhibits skewness and kurtosis. The return distribution for the mobile network companies are different in terms of mean, standard deviation, skewness and kurtosis. The constructed optimal portfolio is able to achieve positive return at minimum risk. This study is significant because it will benefit the investors to obtain the positive return at minimum risk through the investment of these mobile network companies in Malaysia.
Keywords
Investment, Mean, Standard Deviation, Mobile Network, Mean-Absolute Deviation Model
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