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Business and Economics Journal

ISSN: 2151-6219

Open Access

Effect of Diversification on Portfolio Risk Management at Rwanda Social Security Board

Abstract

Jean Bosco Harelimana

The study was conducted to analyze the effect of diversification on portfolio risk management at Rwanda Social Security Board (RSSB). Both primary and secondary data were collected under this study in order to capture the total variation of the two variables. A sample of 84 respondents out of 124 was selected using Solvins formula to respond the structured questionnaire and structured interviews. After coding and editing the data was analyzed using SPSS where the overall mean and deviation was used to observe the perception from respondents. The researcher found there was a significance strong relationship between diversification of portfolio on portfolio risk management at RSSB where the Pearson correlation coefficient was found to be 0.964. However, recommendations given focusing on improvement of international diversification to reduce its portfolio risk, to reduce risks through the purchase of a mutual fund and should not directly invest in securities with maturities greater than the limits imposed by investment policy.

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