Publisher's Synopsis
INTRODUCTION
1.1 Importance of the Study:
Volatility is an important phenomenon for any type of asset market, particularly, for
stock markets. Stock markets with its primary and secondary segments assist the corporate and the
Government to raise funds and if efficient, they are able to allocate capital to its
highest- value users so that returns are maximized subject to their tolerance for risk.
Stock markets encourage savings, capital formation and investment, which are
essential for economic development. They help investors to diversify their assets and thus
reduce the risk the investors have to bear, reduce also the cost of capital and
facilitate investment and economic growth. However, the effectiveness of the stock
market in economic development is ultimately
determined by its volatility and market efficiency.
