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- W1594858692 abstract "Investment appraisal tools rank investments according to their efficiency and optimality of returns. Portfolio return is thought as a linear function of asset weights and its volatility as a non- linear function indicating that portfolio volatility is less than weighted average of individual asset volatility. Past studies concentrated on simple accept-or- reject investments decisions with conventional cash flows without taking into account firms with complex investment situations and problems. Companies in the soft drink industry in Kenya have adopted performance optimization strategies on various investments in order to compete in new and turbulent business environment and mostly use projected cash flows for investment appraisal, it is clear that an image of investment alternative is not the same in the real world and these investment alternatives in a set can either be efficient or inefficient. This study focused on the contribution of investment appraisal on efficient portfolio selection. The research adopted a survey design with a target population of 250 respondents selected by census technique. Primary data was collected using an interview schedule and secondary data was collected from respondent’s records relating to real and financial assets. Study results indicate a strong correlation between investment appraisal techniques and investment alternatives ( F = 293.094, R=0.926; R 2 =0.857; p = 0.000 < 0.05) and investment appraisal account for 85.7% of investments alternatives, their ranking is influenced by the type of investment appraisal tools applied, a significant relationship exist between investment appraisal techniques and portfolio efficiency ( F = 259.64; R 2 = 0.842 ; p 0.000 < 0.05 ); therefore investments appraisal techniques application influence efficient portfolio selection in the soft drink industry; Part analyses of the investment appraisal techniques on portfolio efficiency show that PBP has a higher significant relationship with portfolio efficiency(F=1037.205; p 0.000< 0.05). Study results suggest the need for firms to maximize the application of net present value and payback period to enhance portfolio efficiency to realize optimal performance. Keywords: Kenya, Soft Drink Industry, Investment Appraisal, Diversification, Efficient Portfolio" @default.
- W1594858692 created "2016-06-24" @default.
- W1594858692 creator A5018318116 @default.
- W1594858692 creator A5035579519 @default.
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- W1594858692 date "2015-01-01" @default.
- W1594858692 modified "2023-09-24" @default.
- W1594858692 title "Influence of Investment Appraisal on Efficient Portfolio Selection in the Soft Drink Industry in Kenya" @default.
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