AN ANALYSIS OF THE EFFECTS OF INTEREST RATE AND EXCHANGE RATE CHANGES ON STOCK MARKET RETURNS: EMPIRICAL EVIDENCE OF GHANA STOCK EXCHANGE

A thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirement for the degree of

COMMONWEALTH EXECUTIVE MASTERS OF BUSINESS ADMINISTRATION

Institute of Distance Learning, KNUST

JUNE, 2011

DECLARATION

I hereby declare that this submission is my own work toward the Commonwealth Executive Master of Business Administration and that, to the best of my knowledge, it contains no material previously published by another person nor material which has been accepted for the award of any other degree of the University except where due acknowledgement has been made in the text.

RANSFORD CHARLES ENYAAH (STUDENT ID No: 20103521)

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Certified by:

EDWARD ACHEAMPONG (SUPERVISOR)

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Certified by:

……………………………… Head of IDL

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i

DEDICATION I dedicate this project work to the Lord Almighty and all my loved ones.

ii

ACKNOWLEDGEMENT

First of all, I thank the almighty God for fulfilling his promises to my life and for granting me the strength, wisdom and knowledge to complete this work

My profound gratitude goes to my Supervisor, Mr. Edward Acheampong (Lecturer, Methodist University College, Ghana) for his unflinching dedication, direction, continuous encouragement and above all his constant constructive criticism which saw this work through to a successful end. I also acknowledge sincerely the time and support of Professor Kodwo Ewusi (Head of Economics Department, Methodist University College, Ghana), whose excellent advice and suggestions contributed extensively to the accomplishment of this thesis.

I am