The study of the risk-return relationship of securities is decisive in order to appreciate in particular the attractiveness of a financial market. Using the Asymetric Response Model (ARM), we show that the level of risk taken by investors is insufficiently remunerated on the BRVM market with regard to the risk premium obtained. This result confirms the relevance of the ARM model in developing markets. It also underlines the need to rebalance the risk-return relationship on the BRVM in order to make it more attractive.
KeywordsRiskReturnARMCAPMBRVM
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