Risk Disparity among Conglomerates and Single Entities in the Dhaka Stock Exchange

This paper gathers evidence that market risk varies considerably among companies traded in the Dhaka Stock Exchange. We find evidence of statistically significant difference in VaR between bias and random portfolios where a bias portfolio is one that comprise at least two of the five companies in a portfolio from large business groups while a random portfolio consist of any five companies picked randomly from a given sample. This renders a lesson for investors in the market, especially who are myopic in nature, that stocks with good fundamentals are better not only as long term investments but also for gains in the short-run.