" Conventional and Islamic Indices in Bangladesh: A Comparison on Performance and Volatility"

Abstract

The purpose of this study was to identify and compare the performance and volatility of Islamic and conventional stock indices of Bangladesh. The study adopts (1) Capital Asset Pricing Model (CAPM) to compare the performance of the DSE Shariah Index (DSES) to represent Islamic index and DS30 to represent the conventional, (2) beta calculation to measure volatility. The data coverage is from January 2015 to December 2020. The study finds that: (1) There is no significant difference in performance between DSES and DS30, (2) DSES is less volatile than DS30. Moreover, the result implies a challenge for the authorities to educate society, particularly those who concern with Shariah principles, with information that Islamic index performance is not much different from the conventional index and less volatile.