A Study on the Impact of Sustainable Eco-Finance and Asset Allocation Strategy
DOI:
https://doi.org/10.58574/jaa.2025.v4.i2.01Keywords:
Risk-Return Policy, Asset Allocation, Optimum Portfolio, Financial RiskAbstract
The present study aimed to evaluate the return performance and variability of green finance investment stocks and conventional stocks over the past five financial years. The research sought to assess whether green finance stocks’ investment offers competitive and stable returns compared to traditional equity investments. By means of data from the last five financial years, this study computed single-period Ex-post return, Arithmetic mean return, Geometric mean return, and multiple-period holding period of returns for both Green and Conventional stock groups. Despite the use of inferential statistical techniques, including single-factor ANOVA, F-test, and Student T-test, to test the significance of differences in mean return and variances.
The single-factor ANOVA-shaped F Calculated value, which was below the critical value with a P value of 0.0746 (approx.), indicates that the mean return in between the two groups was not statistically different. However, the F-test showed a one-tailed, F-calculated value and P value 0.0012 (approx), suggesting a significant difference in return variances. The Student T test was also applied to confirm that the returns were statistically comparable. The results provide an actionable insight for Investors considering Green Finance Instruments. The study enhanced limited empirical research on green finance by providing a five-year comparative analysis of green vs conventional stock returns comparable to risk using statistical methods.
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Copyright (c) 2025 Sanjib Paul, Sandip Bhattacharyya
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Research Articles in 'Journal of Academic Advancement' are Open Access articles published under the Creative Commons CC BY License Creative Commons Attribution 4.0 International License http://creativecommons.org/licenses/by/4.0/. This license allows you to share – copy and redistribute the material in any medium or format. Adapt – remix, transform, and build upon the material for any purpose, even commercially.
