This document is a research proposal examining the effects of financial literacy on securities market participation in Kenya. It provides background on financial literacy and its importance in empowering consumers to make informed financial decisions. The study aims to determine the factors influencing participation in Kenya's securities market and examine the relationship between financial literacy, investor behavior, and market participation. The researcher proposes a quantitative cross-sectional design involving a survey of investors. The expected findings will provide insights for improving financial literacy and encouraging greater securities market involvement in Kenya.

1. FINANCIAL LITERACY: ITS EFFECTS ON SECURITIES
MARKET PARTICIPATION IN KENYA.
A Case Study of Nairobi Securities Exchange
Kamau Ian Moses Kamanja
K16S/CTY/14859/2010
0722289986
A research project submitted to the school of Economics- department of Applied
Economics KENYATTA UNIVERSITY, in Partial Fulfilment of the Award of
Degree in Economics and Finance Kenyatta University
Presented to: Dr. Njaramba
July 2013

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Contents
Declaration....................................................................................................................................................4
DEDICATION...............................................................................................................................................5
ABSTRACT......................................................................................................................................................7
ACRONYMS/ABBREVIATIONS..........................................................................................................................8
CHAPTER ONE................................................................................................................................................9
INTRODUCTION..........................................................................................................................................9
Background of the Study.........................................................................................................................9
Problem Statement............................................................................................................................... 11
Research Questions .............................................................................................................................. 12
Research Objective ............................................................................................................................... 12
Significance of the Study....................................................................................................................... 12
Scope and Limitations of the Study ........................................................................................................ 13
Conceptual framework.......................................................................................................................... 13
Description of the model....................................................................................................................... 13
CHAPTER TWO............................................................................................................................................. 15
LITERATURE REVIEW................................................................................................................................. 15
Introduction......................................................................................................................................... 15
CHAPTER THREE........................................................................................................................................... 18
RESEARCH METHODOLY ........................................................................................................................... 18
INTRODUCTION .................................................................................................................................... 18
Sampling Design and Sample Size........................................................................................................... 19
Table 3.1: showing the sample size selection.......................................................................................... 19
Data Sources ........................................................................................................................................ 19
Data Collection Instruments .................................................................................................................. 20
Measurement of Variables ..................................................................................................................... 20
Validity and Reliability Test.................................................................................................................... 20
Reliability and Validity Index.................................................................................................................. 21
Data Analysis........................................................................................................................................ 21
Anticipated Limitations ......................................................................................................................... 21
CHAPTER FOUR............................................................................................................................................ 22

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RESULTS AND FINDINGS OF THE STUDY ..................................................................................................... 22
Introduction......................................................................................................................................... 22
Sample Characteristics.......................................................................................................................... 22
Table 4.1: showing age group of Respondents........................................................................................ 23
Table 4.2: showing gender of respondents ............................................................................................. 23
Table 4.3: showing Highest Level of Education attained by respondents................................................... 24
Table 4.4: showing the stocks being traded by Respondents.................................................................... 24
Table 4.5: Showing the Brokerage firm respondents traded with............................................................. 25
Table 4.6: showing the frequency of respondents’ trading on the NSE ..................................................... 26
Factor Analysis Results.............................................................................................................................. 26
Financial Literacy...................................................................................................................................... 27
4.4 Relationship between the variables ..................................................................................................... 28
The Financial Literacy, Investor Behaviour affects Participation by investors in the Securities Market........ 29
RegressionModel forthe componentsof FinancialLiteracyandInvestorBehaviour withSecuritiesMarket
Participation as the dependent Variable................................................................................................. 29
Regression Model..................................................................................................................................... 30
CHAPTER FIVE.............................................................................................................................................. 32
DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS............................................................................. 32
Introduction......................................................................................................................................... 32
Discussion of findings............................................................................................................................ 32
Conclusions.......................................................................................................................................... 33
Recommendations................................................................................................................................ 33
Areasfor further research..................................................................................................................... 34
REFERENCES................................................................................................................................................ 35
Appendix 1: Questionnaire ........................................................................................................................... 37
Appendix 2: Coding...................................................................................................................................... 43

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Declaration
I declare that this project is my own original work and has not been submitted for examination or any
other institution of Higher Learning or for any reason whatsoever.
Signature Date

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DEDICATION
To my loving mum, Uncle Daniel Kariuki and my best friend Joshua Muli

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ACKNOWLEDGEMENTS
I wish to thank my mum who has always supported me in my goals and equally encouraged me in my
studies.
Thanks to my friends who have always stood by me and encouraged me throughout my studies.
Thanks to the rest of my family who amidst their complaints of me spending so much time on this
research, still encouraged me.
I wish to acknowledge the support of my supervisor, Dr. Njaramba who tirelessly encouraged and
guided me in the completion of this research and was always available to tune me in the right direction.
I wish to recognise the support and encouragement I received from my friends- Faith Mwangi, Kelvin
Kihara and Catherine Gitonga

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ABSTRACT
Individuals are increasingly being encouraged to be in charge of their financial security before, and after
retirement. Moreover, the supply of complex financial products has increased considerably over the
years. However, it emerges that people still have little or no information, financial knowledge and skills
to navigate this new financial environment.
The purpose of the study is to examine the level to which financial literacy influences investor
behaviour and its effects on securities market participation in Kenya on the Nairobi Securities Exchange
(NSE). The study has been initiated because although the Nairobi Securities Exchange (NSE) opened in
1954, only sixty companies (compared to other securities market like the New York Securities
Exchange which has more than 60 public listed companies) are currently listed with relatively a growing
number of investors (both retail and corporate) whose trading patterns are uncertain and not clear yet the
securities market has a potential to grow even bigger than it currently is.
A cross sectional quantitative research design has been used. Using a proportional random sampling
approach, a sample of 86 investors was selected from NSE. The research instrument was a self-
administered questionnaire which sought responses on financial literacy, investor behaviour and
securities market investor participation on the NSE. Forty five (45) fully filled questionnaires were
returned, giving a response rate of 45%.
Financial literacy has been found to significantly predict 50.3 percent of the variance in securities
market participation on the NSE and influence on investor behaviour was found to significantly predict
9.1 percent of the variance in securities market participation.
The results on the relationship indicates that the level of financial literacy among investors is positively
related while influence on investor behaviour, is negatively related to securities market participation.
In light of the findings, various recommendations are suggested on how best investors can make use of
available information to make objective investment decisions on the NSE. This will help in encouraging
potential investors in investing on the securities market.

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ACRONYMS/ABBREVIATIONS
NSE Nairobi Securities Exchange
OECD Organization for Economic Co-operative and Development
DFID Department for International Development
FSD Foundation for Sustainable Development
FSD Financial Sector Deepening in Kenya
CBK Central Bank of Kenya
CMA Capital Market Authority

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CHAPTER ONE
INTRODUCTION
BackgroundoftheStudy
Financial literacy remains an interesting issue in both developed and developing economies, and has
elicited much interest in the recent past with the rapid change in the financials landscape. OECD (2005),
defines financial literacy as the combination of consumers’/investors’ understanding of financial
products and concepts and their ability and confidence to appreciate financial risks and opportunities, to
make informed choices (and this is based on the influence that it has when choosing between
alternatives), to know where to go for help, and to take other effective actions to improve their financial
well-being (Miller et al., 2009). Financial literacy helps in empowering and educating consumers so that
they are knowledgeable about finance in a way that is relevant to their lives and enables them to use this
knowledge to evaluate products and make informed decisions. It is widely expected that greater
financial knowledge would help overcome recent difficulties in advanced financial/ credit markets.
Financial literacy prepares consumers for tough financial times, through strategies that mitigate risk
such as accumulating savings, diversifying assets, purchasing insurance etc.
It facilitates the decision making processes such as proper debt management which improve the credit
worthiness of potential borrowers to support livelihoods, economic growth, sound financial systems, and
poverty reduction. It also provides greater control of one’s financial future, more effective use of
financial products and services, and reduced vulnerability to enthusiastic retailers or fraudulent schemes.
Facing an educated lot, financial regulators are forced to improve the efficiency and quality of financial
services. This is because financially literate consumers create competitive pressures on financial
institutions to offer more appropriately priced and transparent services, by comparing options, asking
the right questions, and negotiating more effectively. Consumers on their part are able to evaluate and
compare financial products, such as bank accounts, saving products, credit and loan options, payment
instruments, and investment options in the securities exchange, insurance coverage, so as to make
optimal decisions.
Financial literacy is also defined as: the ability to make informed judgments and to take effective
decisions regarding the use and management of money (Worthington, 2005, p.2). Remund (2010) on the

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other hand defines it as a measure of understanding key financial concepts. The authors suggest that
financially literate population is able to make informed decisions and take appropriate actions on matters
affecting their financial wealth and well-being. Financial literacy requirements change over the life time
of an individual in response to the changing financial needs and is therefore important in the private
securities market’s field due to the unique nature of the financial products supplied which are complex,
long-term and have wide social coverage (OECD, 2008). Evidence from both developing and developed
countries indicates that many individuals do not know where to get trustworthy and impartial advice
about securities exchange operations and financial issues for instance, in the United States of America,
where households have a wide array of financial products, low levels of financial literacy prevents
consumers from making good decisions on financial products (Lusardi and Mitchell, 2006; OECD,
2008; James, 2009; Lusardi et al, 2010).
According to Kefela (2010), financial knowledge is directly correlated with self-beneficial financial
behaviour and so financial education should take a wholesome perspective to include the fundamentals
of finance since without understanding the basic finance principles, education in the securities market
operations would be ineffective. In the words of Kefela (2010, p.205), “participants who are less
financially literate are more likely to have problems with debt, are less likely to save, are more likely to
engage in high cost mortgages and are less likely to plan for retirement” and by extension are less likely
to make better choices for their pension schemes and any other financial investment products.
Financial literacy levels in developing countries are quite low. For instance, DFID (2008) shows
evidence that only half of the adult population knew how to use basic financial products. The same
study found that in seven African countries only 29% of adults had a bank account and that
approximately 50% used no financial products whatsoever, not even informal financial products. In
Kenya, FSD (2009) reported that 59.5% of the population was excluded from the use of formal financial
services. According to FSD (2009), exclusion decreases as the level of education increases from 55.9%
for those with no education to 8% for those with tertiary education.
As the African financial markets expand, there is great need for training and research activities to be
highly customized and should include a realistic approach to policy options and practical
implementation problems (Calvert, Campbell and Sodini, 2005; Mandell, 2006a; Mandell, 2006b; FSD,
2008b).
Kenya’s Vision 2030 (strategic plan to achieve key economic milestones by 2030) documents saving
and financial investments provision as an important pillar to achieving economic growth and faster
development of the financial markets. In the long term therefore, the population should be empowered
to make financial decisions which will in turn contribute to reduction in old age poverty as the
population will be empowered to make rational financial decisions for their interests in both the short

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term and the long term (Kafele, 2010). Furthermore, the expansion of financial services in Kenya creates
not only great opportunities, but also more potential for the general population to take wrong financial
decisions hence the need to enhance financial literacy initiatives.
Literature and data on Africa’s financial markets and financial literacy programs is limited, with very
little evidence of any studies evaluating the financial literacy programs in Africa. Moreover FSD
(2008b) challenges policy makers to address financial literacy needs of the general population in Kenya.
The research will seeks to address the knowledge gap by establishing the financial literacy levels
amongst citizens in Kenya determine the finance and securities market literacy training needs, the
challenges to participation in the securities market and determine the strategies (in relation to investor
behaviour among the ones already participating in the securities market) to improve financial literacy
amongst citizens in Kenya.
ProblemStatement
Almost every household or individual in Kenya carries out key financial transactions and decisions as
part of their economic activities and for better livelihood in the future. The question posed however, is
whether the decisions and choices made are guided by financial literacy or other factors. Of interest to
this research is to establish the households’ rate of participation in the securities market/exchange,
factors considered in making key investment decisions and whether the households or individuals are
well-equipped to make financial decisions and, Do they possess adequate financial literacy and
knowledge?
Literature on the linkage between household/individual (in this case an investor) behaviour and the
potential effect of financial education efforts on that behaviour remains scanty. Campbell (2006) argues
that decisions to increase human capital (and by extension financial capability or well-being) by
undertaking higher levels of education, for example, are subject to varying rates of return due to a
number of factors, including one’s expected lifespan upon completion of a degree program. In order to
understand the link between household financial decisions and financial literacy, there is need to
understand households’ effective budgeting techniques, as well as the connection between financial
literacy and their participation in the securities market.

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ResearchQuestions
The research questions are;
a) What are the factors influencing securities market participation at the NSE?
b) What is the relationship between financial literacy and securities market participation?
c) Do investor perceived level of financial literacy affect investor behaviour?
d) To what extent does financial literacy affect investor behaviour on the NSE?
ResearchObjective
General Objective
The study seeks to establish the level of financial literacy in Kenya, its influences on investor behaviour
and the rate of participation in the securities market in Kenya.
SpecificObjectives
i. To determine the factors influencing securities market participation on the NSE
ii. To examine the relationship between financial literacy and securities market participation
iii. To determine the level to which financial literacy affects investor behaviour on the NSE
iv. To establish the extent to which financial literacy affects investor behaviour on the NSE
Significance ofthe Study
Financial literacy is a socially and scientific study that needs to be majorly focused upon. It is through
financial literacy that people make correct and relevant decision for their key financial transactions and
secure financial investments. Financial literacy is also a key macroeconomic problem. Few studies have
been done before to establish the relationship and effects of financial literacy on securities market
participation. This study intends to tackle exactly that and act a material reference among scholar. This
research will be important in providing the government and other financial institutions, to help grow the
gross Domestic Product of Kenya at large. The research will also provide insights to policy makers on

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existence of links in the economy; factors that complement each other. It will also work to empower the
Kenya citizens in making key financial decision for their daily economic activities.
Scope and Limitations of the Study
This study focuses on the financial sector of the economy and more specifically the securities exchange
market. It targets the general population of Kenya. It is limited to Nairobi County and its environs,
running for duration of 4 to 6 months.
Conceptual framework
Adopted from Luigi&Tullio (2005), Weber&Milliman (1997) and Alexander (2004)
Descriptionof the model
In order to make proper investment decisions, investors require information and should be
knowledgeable about the various stocks being traded (stock market activities). Financial literacy
(Awareness) can be through social learning, financial information and from private sources. The level of
awareness by the investor will affect the individual risk attitudes of the investors and stock price
predictions hence affecting trading behaviour of stocks in the market.
Investor Awareness
 Financial awareness
 Social learning
Securities Market Participation
 Affect
 Cognition
Investor behaviour
 Psychological
 Sociological
 Emotional

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According to Guiso and Japelli (2005), awareness of investors can be through learning from issuers and
distributors of information, and others often learn about investment opportunities from peers who have
been informed by financial intermediaries (Social learning). On the other hand, awareness can be
through financial awareness which is majorly determined by the investor’s resources (income, financial
wealth), age and education status. And the information an individual holds determines their risk
perception.
Finucane et al. (2000), asserts that if subjects were given information that risk is high, they were
expected to infer low benefit; if they were given information that risk is low, they were expected to infer
high benefit. And this makes perceived risk negatively correlated to self-esteem, rigidity and risk taking
hence affecting investor behaviour.
According to Huang (2003), human behaviour is not only cognitive, but also emotional which
influences investor behaviour when trading. And the need to incorporate psychology attempts to explain
how perception of investors and their reaction to uncertainties affect the investment decision there by
influencing price movements of stocks.

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CHAPTER TWO
LITERATURE REVIEW
Introduction
The section presents a critical review of research work carried out by various scholars in the field of
financial literacy, investor behaviour and securities market participation.
Financial literacy is yet to receive enough attention although there has been growing attention in the
recent past. Levels of financial literacy across the world remain very low, although there is not much
literature to support this assertion. However, OECD country level survey data confirms this view, with
consumers consistently performing poorly on tests of financial literacy. Bernheim and Garrett (2003)
and Vitt, et al. (2000) established that 75 percent of consumer financial literacy programs started in the
late 1990s or 2000. Campbell (2006) argues that with financial education poor financial decisions are
likely to be reconciled with economic theory given that households have been found to make sub
optimal decisions which deviate from what economic theory suggests.
Campbell conceives that persons with higher education levels (high school, college, graduate school) are
likely to be more active in capital markets due to reduced information asymmetry.
Also, there exist very few studies that provide information on both financial literacy and variables
related to financial decision-making (for example saving, portfolio choice, and retirement planning). To
remedy this lack of data, Lusardi and Mitchell (2006) devised a module on financial literacy for the
2004 US Health and Retirement Study (HRS). Their questions aimed to test basic financial knowledge
related to the working of interest compounding, the effects of inflation, and risk diversification. They
found that financial illiteracy is widespread and particularly acute among specific groups of the
population, such as women, the elderly, and those with low education. These results are surprising not
only because the literacy questions were rather simple and basic, but also because their sample was
composed of respondents who are 50 or older. Most respondents in that age group have checking
accounts, credit cards, and have taken out one or two mortgages. However, similar results are found in
the work by Hilgert and Hogarth (2002), which examines financial literacy in a sample covering all age
groups, and on surveys by the National Council on Economic Education (NCEE), that cover financial
literacy among high school students and the adult population. Findings of widespread illiteracy are also

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reported in studies on smaller samples or specific groups of the population (Agnew and Szykman
(2005), Bernheim (1995, 1998), Mandell (2004), and Moore (2003)).
Whereas these studies focused on data from the US, surveys from other countries (particularly the
developing countries) show very similar results. A study by the OECD (2005) and work by Lusardi and
Mitchell (2007b) review the evidence on financial literacy across countries and show that financial
illiteracy is a common feature in many other developed countries, including European countries,
Australia, and Japan. These findings are echoed in the work of Christelis, Jappelli and Padula (2007),
which uses data very similar to the US HRS, and finds that most respondents in Europe score low on
numeracy scales.
Financial illiteracy has implications for household behaviour. Bernheim (1995, 1998) was the first to
point out not only that most households cannot perform very simple calculations and lack basic financial
knowledge, but also that the saving behaviour of many households is dominated by crude rules of
thumb. In more recent works, Bernheim, Garrett and Maki (2001) and Bernheim and Garrett (2003)
show that those who were exposed to financial education in high school or in the workplace save more.
Similarly, Lusardi and Mitchell (2006, 2007a) showed that those who display low literacy are less likely
to plan for retirement and, as a result, accumulate much less wealth (see also Hilgert, Hogarth and
Beverly (2003)). This finding is confirmed in the work by Stango and Zinman (2007), which shows that
those who are not able to correctly calculate interest rates out of a stream of payments end up borrowing
more and accumulating lower amounts of wealth. Agarwal, Driscoll, Gabaix and Laibson (2007) further
show that financial mistakes are prevalent among the young and elderly, who are those displaying the
lowest amount of financial knowledgeDriscoll, Gabaix and Laibson (2007) further show that financial
mistakes are prevalent among the young and elderly, who are those displaying the lowest amount of
financial knowledge.
The measures of financial literacy used in existing studies are often crude. For example, Lusardi and
Mitchell (2006, 2007a) rely on only three questions to measure financial literacy, and Stango and
Zinman (2007) rely on one question. Moreover, the surveys that provide more extensive information
about financial literacy often have little or no data on wealth, saving, or other important economic
outcomes (see, for example, the NCEE survey).
The study is to overcome the problems with some of the previous studies by providing comprehensive
measures of financial literacy as well as providing an evaluation of the quality of the literacy data. In
addition, I will link (through the research) financial literacy with an important economic outcome:
participation in the securities market. While extensive research on this topic exists, it is still a “puzzle”

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why so many households do not hold securities (Campbell (2006)). Some have argued that the long-
term nature of securities investments, income risk, passive, and departures from expected utility
maximization may explain why so few households invest in financial products (Haliassos and Bertaut
(1995)), but it has proven hard to account for all these factors in available micro data sets.
Others have argued that young people cannot borrow and thus do not have wealth to invest in securities
(Constantinides, Donaldson and Mehra (2002)). These life-cycle considerations and the wedge between
borrowing and lending rates provides some explanation for lack of securities ownership (Davis, Kubler
and Willen (2006)), but even these reasons cannot fully explain why such a large proportion of families
do not invest in securities and other securities. More recent papers have incorporated other reasons, such
as trust and culture (Guiso, Sapienza and Zingales (2005)), and the influence of neighbours and peers
(the society) (Hong, Kubik and Stein (2004), and Brown, Ivkovich, Smith, and Weisbenner (2007)). Yet
other authors have started to consider limited numeracy and cognitive ability (Christelis, Jappelli and
Padula (2007)), lack of asset awareness (Guiso and Jappelli (2005)), and lack of financial sophistication
(Kimball and Shumway (2006)). My work is to improve substantially upon these studies by considering
more refined indicators of financial literacy and financial sophistication that I will explicitly designed
for a survey of Nairobi households. Moreover, to better understand the relationship between financial
literacy and equities market participation; the research also designed questions to measure economic
knowledge of these same households, before entering the securities market.

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CHAPTER THREE
RESEARCH METHODOLY
INTRODUCTION
The section looked at the research design, the population of study, sample size, sources of data, data
collection methods, measurement of variables, the validity and reliability test, data analysis and
anticipated limitations of the study.
Research Design
The study used a cross sectional quantitative research design. It involved descriptive and analytical
research designs to establish whether changes in the independent variable affect the dependent variable.
The design was used because data about variables can be obtained once in a given time period. A
correlation approach using quantitative data was used to establish the relationship between financial
literacy, investor behaviour and stock market participation. And a regression model was adopted to
establish how the independent variable predicts the dependent variable.
Study Population
The study comprised both staff of brokerage firms on the NSE and individual investors trading with the
brokerage firms. The population distribution according to the licensed brokerage firms (8) though there
are (22) in total on the NSE are: Dyer& Blair (K) Ltd (15 investors), African Alliance (K) Ltd (20
Investors), CFC Financial Services Ltd (10 investors), Kestrel Capital Ltd (10 investors), ABC Capital
Ltd (14 investors), Equity Stock Brokers (K) Ltd (15 investors), and Standard investment bank (13
investors), Kingdom Securities (18 investors). The total population was 110 investors and technical
staff.

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Sampling Design and Sample Size
The sample size of 86 was determined using Krejcie and Morgan (1970) table scale. To select the
sample, staff of brokerage firms and individual trading accounts with the brokerage firms was chosen
proportionately from each of the 8 brokerage firms.
Table 3.1: showing the sample size selection
Firm Population Sample
Kingdom Securities 18 10
Dyer & Blair Ltd 15 8
African Alliance 20 12
Kestrel Capital 10 18
CFC Financial Services 10 18
ABC Capital Ltd 14 7
Equity Stock Broker 15 8
Standard Investment Bank 13 7
Total 110 86
Data Sources
 Primary Data
Data was got from holding interviews with the brokers and individual investors in the brokerage firms
and through issue of semi-structured questionnaires to the brokerage firms and investors on the NSE.
 Secondary Data
Journals, NSE Annual Reports, newspapers and reports from the brokerage firms were used.
Data regarding the trading of equities of companies from the licensed brokerage firms on the
NSE was used alongside documentation from previous studies.

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Data Collection Instruments
 Questionnaire
Primary data was collected using a questionnaire which was made up of closed ended questions that
were initially developed and pilot tested to ensure validity and reliability of the measurement scales.
The questionnaire which is presented in Appendix 1 was directed to investors. A total of 100
questionnaires were sent out to the respondents and 45 responses were received from the investors.
Data was collected from the brokers who trade stocks on behalf of investors (middle men) as well as the
individual investors trading with the brokerage firms.
Measurement of Variables
All item scales for the variables were derived from previous studies where they had been tested for validity and
reliability.
Financial was measured using a scale adapted from Ekambaram et al (2003). A 5 point Likert scale ranging from
strongly disagrees to strongly agree was used.
The perceived risk attitudes of the investors was measured using a point bi-serial correlation adapted from Weber
and Milliman (1997) between investor’s risk judgment about the company and his choice and a psychometric
approach based on likert statements that produced a onedimensional risk attitude scale.
Investor behaviour was measured using State Street’s approach which measures confidence directly and
quantitatively by assessing the changes in investor holdings of risky assets,herding, over and under reaction and
loss aversion of investors. This was based on likert statements ranging from strongly disagree to strongly agree.
Validity and Reliability Test
A pre-test of the research instruments to establish the validity was done. To determine the internal
consistency or reliability of financial literacy and securities market participation, Cronbach Alpha Co-
efficient was used as an index of reliability (Cronbach, 1951). A questionnaire was then given to the
individuals to give their opinion regarding its relevancy using a 5- point Likert scale as shown below.

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Reliability and Validity Index
Anchor Cronbach Alpha value Content Validity Index
Financial Literacy 5 Point .813 .800
Investor Behaviour 5 Point .630 .800
Stock Market Participation 5 Point .765 .643
Reliability and validity values which are indicated by the Cronbach Alpha and Content Validity Index
respectively were observed to be above 0.6 for all variables. This indicates the scale was both reliable
and valid.
Data Analysis
The data was processed through tabulated frequency distributions using the SPSS programme. A
correlation statistical technique was then used to test and establish the strength of the relationship
between the variables. A regression model was used to examine the percentage of variance of the
dependent variable explained by the independent variables for prediction purposes.
Anticipated Limitations
 The study concerns a sensitive area regarding investors and brokerage firms’ trading which
causes suspicions hence some vital information may be concealed due to lack of trust.
 The methodology was be limited due to the fact that measurement of variables using scales may
be subject to modifications since the scales were tailored to developed economies where the
securities markets are more developed than our NSE.
 There is a possibility of getting varying/ poor responses depending on the respondent’s level of
conceptualization.

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CHAPTER FOUR
RESULTS AND FINDINGS OF THE STUDY
Introduction
This chapter contains the presentation of results and interpretation of the findings in relation to
objectives of the study which were;
 To determine the factors influencing securities market participation on the NSE
 To examine the relationship between financial literacy and securities market participation
 To determine the level to which financial literacy affects investor behaviour on the NSE
 To establish the extent to which financial literacy affects investor behaviour on the NSE
SampleCharacteristics
This showed the characteristics of the respondents with regard to the response rate, age group, gender,
education level, and monthly income, period of trading on the NSE, the securities being traded, the
trading brokerage firm and the frequency of trading on the NSE. The results showed the following;
ResponseRate
Forty five (45) fully filled questionnaires out of the 100 questionnaires distributed were received from
brokers of the brokerage firms and individual investors. This represented a 45% response rate.
AgeGroupofRespondents
Respondents were categorized by age group and the results in the table indicated the following on age
group of the respondents.

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Table 4.1: showing age group of Respondents
Frequency Valid Percentage Cumulative Percentage
18 - 27 yrs 11 24.4 24.4
Valid 28 - 36 yrs 26 57.8 82.2
37 - 46 yrs 8 17.8 100.0
Total 45 100.0
The results in the table 4.1 indicated that the majority (57.8%) are in the 28 – 36 year age bracket while
only 17.8% are in the 37 – 46 year age bracket. Only 24.4% were in the 18 – 27 year age bracket. The
findings on the age of respondents indicated that age being a determinant of awareness showed that
investors with age of 28 years and above were seen to be more aware of securities market activities.
Genderofthe Respondents
The findings on categorization of respondents in terms of gender were as follows as indicated in the
table below.
Table 4.2: showing gender of respondents
Frequency Valid Percentage Cumulative Percentage
Male 29 64.4 64.4
Valid Female 16 35.6 100.0
Total 45 100.0
From table 4.2 above, the sample was dominated by males (64.4%) while on the other hand; the females
comprised 35.6% of the sample. this implies that trading was dominated by the male who were seen to
be more confident when trading on the NSE than their female counterparts.
Highest Level of Education
The results on the highest level of education attained by the respondents indicated the following as
shown in the table below.

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Table4.3: showingHighestLevel ofEducationattainedby respondents
Frequency Valid Percent Cumulative Percent
Primary 1 2.2 2.2
Secondary 3 6.7 8 9
Certificate & Diploma 9 20.0 28.9
Degree & Above 32 71.1 100.0
Total 45 100.0
The results in table 4.3 showed that respondents with a degree & above dominated the sample
(71.1%) while Certificate & Diploma; Secondary and Primary holders represented 20.0%, 6.7% and
2.2% of the sample respectively. This implies that with a higher education level, investors are seen to be
more likely aware of the stock market activities; its costs and benefits hence attracting more individuals
to trade.
The stocks traded in by Respondents
Findings on the stocks traded on the NSE by the respondents indicated the following;
Table 4.4: showing the stocks being traded by Respondents
Valid Percent Cumulative Percent
Barclays Bank share 3.45 3.45
British American Tobacco share 6.90 10.34
Centum investment co. ltd share 3.45 13.79
NIC Bank share 11.49 25.29
EABL share 3.45 28.74
Equity Bank share 8.05 36.78
Jubilee holdings share 2.30 39.08
KCB share 6.90 45.98
Kenya Airways share 2.30 48.28
Nation Media Group share 2.30 50.57
Kenya Re-Insurance Corporation share 4.60 55.17
Trans-Century Ltd share 12.64 67.82
CFC Stanbic Bank share 22.99 90.80
Mumias Sugar Share 9.20 100.00
Total 100.0

25. 25
The results in table 4.4 above indicated that the sample was dominated by the CFC Stanbic Bank
Share (22.99%) followed by Trans-century Share (12.64%), NIC Share (11.49%) while on average, the
trading of Mumias Sugar Share stood at 9.2%, Equity Bank Share at 8.05%, KCB
Share at 6.9%, and BAT (K) Share at 6.9%. The shares that were least traded were NIC Share
(4.6%), Barclays Bank Share (3.45%), EABL Share (3.45%), Centum Investment Co. Share
(3.45%), Jubilee Holdings Share (2.30%), Kenya Airways Share (2.30%) and Nation media share
(2.30%).
This implies that majority of the sample invested more in local company shares (local bias) compared to
the foreign company shares.
The Brokerage firm trading with
Findings in the table indicated which brokerage firm respondents traded with
Table 4.5: Showing the Brokerage firm respondents traded with
Valid Cumulative
Percent Percent
Dyer & Blair 32.69 32.69
African Alliance 26.92 59.62
Kestrel Capital 1.92 61.54
ABC Capital 13.46 75.00
CFC Financial Services 5.77 80.77
Equity Stock Brokers 15.38 96.15
Kingdom Securities Ltd 3.85 100.00
Total 100.00
The results in the table above indicated that the majority (32.69%) traded with Dyer & Blair, followed
by African Alliance (26.92%), while 15.38% traded with Equity Stock Brokers,
13.46% with ABC Capital, 5.77% dealt with CFC Financial Services, 3.85% traded with Kingdom
Securities and only 1.92% traded with Kestrel Capital.

26. 26
How often do you trade on the NSE?
The results in the table indicated the frequency of respondents’ trading on the NSE
Table4.6: showingthefrequencyofrespondents’ tradingontheNSE
Frequency Valid Percent Cumulative Percent
Weekly 3 6.7 6.7
Monthly 4 8.9 15.6
Quarterly 11 24.4 40.0
Semi- Annually 6 13.3 53.3
Annually 21 46.7 100.0
Total 45 100.0
The results in the table 4.6 indicated that the majority (46.7%) traded on the NSE yearly while 24.4%
traded quarterly, 13.3% traded twice a year. Only 8.9% traded monthly and 6.7% traded on a weekly
basis. This implies that the securities market is dominated by passive investors who often trade annually
with hardly any active investors.
Factor Analysis Results
This section presented factor analysis on financial literacy and securities market participation. Factor
analysis helped the researcher to understand the composition of both variables and the relevancy of the
factors in each variable.

27. 27
Financial Literacy
Factor Analysis Results helped the researcher to understand the composition of financial literacy.
Factor Analysis: Securities market participation Affective Cognitive
I usually have a fear to invest in stocks that have a sure gain .849
I am cautious about stocks which show sudden changes in price or trading activity .860
I usually have worry investing in stocks that have had a past negative performance
in trading .858
I am always attracted to investing in stocks .579
I feelthat the idea of participating in a buy/sell on the stock market is appealing .830
I am usually at ease with the stock trading system on the NSE .779
I am often not afraid to invest in stocks that have shown a past positive performance
in trading .549
My investment in stocks is largely based on investment knowledge, experiences
and education .536
I usually consider the credibility of brokerage firms that provide the financial
services .897
I can easily ascertain the expertise of the brokers offering service .651
It is always easy to determine the credibility of the stock market .600
I can easily tell the reputation of brokerage firms staffing service .718
I am hopeful when undertaking investment in stocks that have exhibited a sure loss .789
Eigen Value 3.4565 1.397
Variance % 49.377 19.952
Cumulative % 49.377 69.329
Affective
This component constituted 49.377% of the securities market variable. Most important elements under
this component included an individual’s fear to invest in stocks that showed a sure gain (.849), one’s
worry of investing in stocks that exhibited past negative performance in trading (.858), the comfort of

28. 28
trading in stocks that have shown a past positive performance (.549), how cautious one is with stocks
that showed sudden changes in price (.860), and the willingness to invest in stocks on the NSE (.579);
how appealing it is for one to participate in stock trading (.830), and the ease one has with the stock
trading system on the NSE (.779)
Cognitive
This component accounted for 19.952% of the securities market participation variable. Most emphasis
lay on how an investor’s investment knowledge, experience and education affect investment (.536), the
credibility of brokerage firms that provide financial services (.897), the reputation of brokerage firms
staffing service (.718), the expertise of brokers offering service (.651), the credibility of the stock
market (.600), and the hope of investing in stocks that have exhibited a sure loss (.789).
Findings showed that affect is the major determinant of securities market participation among investors
compared to cognition.
4.4 Relationship between the variables
The section presented findings on the correlation between Investor Awareness, securities market
participation, and Investor Behaviour.
The results in the table below indicated the results for the correlations between Financial Literacy,
Investor Behaviour, and Securities Market Participation.
Social Financial Financial Investor Securities
Learning Awareness Literacy Behaviour Market
Participation
Social learning 1.000
Financial Awareness .587** 1.000
Investor Awareness .619** .559** 1.000
Investor Behaviour .419** .572** .555** 1.000 -.389**
Securities Market
Participation -.466** -.302* .594** 1.000
** Correlation is significant at the 0.01 level (2-tailed).
** Correlation is significant at the 0.05 level (2-tailed).

29. 29
Financial Literacy and Stock Market Participation at the NSE
The results in the table indicated that the Financial Literacy and Stock Market Participation are
positively related (r = .594**, p >.01). Results in this case indicate that as Investors gain knowledge and
Information about the stock market activities, their perceived risk will gradually decrease and they will
be more likely to invest in that particular stock (getting more involved in the securities market).
The Securities Market Participation and Investor Behaviour on the NSE
The Investor Behaviour and Securities Market Participation are negatively related (r = -.389**, p<.01).
This implies that if investors exhibit worry, fear and are cautious (high risk perceived) when making an
investment decision on the stock market, it will lead to a negative mood resulting into pessimistic
behaviour; for example, one may be less confident when trading in a particular company stock. On the
other hand, an optimistic investor exhibits low risk perception therefore, likely to invest more (over
confident).
The Financial Literacy, Investor Behaviour affects Participation by investors in the
Securities Market
The section presented the findings on regression analysis. A regression model was used to show the
level to which financial literacy and investor behaviour can predict the rate of participation on Securities
Market
RegressionModelforthecomponentsof Financial Literacy andInvestorBehaviourwith Securities
MarketParticipationasthe dependentVariable
Results for determining the overall effect of the components of financial literacy and investor behaviour
on securities market participation can be seen in the table below

30. 30
Unstandardized Standardized
Coefficients Coefficients t Sig.
Model B Std. Error Beta
(Constant) 1.759 .823 2.138 .039
Social learning .079 .143 .101 .555 .582
Financial Awareness .519 .157 .535 3.304 .002
Affective .156 .248 .105 .629 .533
Cognitive .201 .226 .144 .888 .380
Dependent Variable: Stock Market Participation
R Square .349
Adjusted R Square .283
F Statistic 5.238
Sig. .002
Results indicated that social learning, financial awareness, affective and the cognitive component can
explain 28.3% of the variance in the stock market participation (Adjusted R Square =
.283). Financial Awareness was the only variable that had a level of significance less than .05 and the
rest of the components all had their levels of significance above .05. Overall, the regression model was
significant at the 95% confidence interval level.
Regression Model
The regression model in the table below indicated the level to which investor awareness and investor
behaviour can predict stock market participation.
Unstandardized Standardized Dependent Variable:
Model Coefficients Coefficients t Sig. Investor Behaviour
B Std. Error Beta R Square .314
(Constant) 2.144 .524 4.095 .000 Adjusted R Square .281
Financial Literacy .451 .145 .502 3.120 .003 F Change 9.396
Stock Market
Participation .087 .154 .091 .566 .575 Sig. .000
The regression model above revealed an acceptable fit of adjusted R Square (.281). Adjusted R
Square (.281) indicates that financial literacy, investor behaviour can predict the level of stock market
participation by (Adjusted R Square = .281). Financial literacy (Beta = .502) is a better determinant of
stock market participation than the investor behaviour (Beta =.091). The implication is that the level of

31. 31
awareness, that is, the knowledge and information one has on a particular company stock/ about the
stock market, greatly affects the investor behaviour than the rate of securities market participation. The
more knowledgeable one is the more likely one is to invest.

32. 32
CHAPTER FIVE
DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS
Introduction
This chapter presents discussion of findings observed and inferred from the data provided in chapter
four. The discussion presents information about the variables, their comparison, and the results in
relation to the research objectives.
Discussion of findings
The section presents a discussion of findings, conclusions and recommendations of the study in line
with the research objectives.
The relationship between financial literacy and investor behaviour on the
NSE
Findings showed that Investor Awareness and investor behaviour were negatively correlated. Findings
were in support with Weber and Milliman (1997) and Sjoberg (2001) argument where it was argued
that, the more financial information one has, the lower the perception of risk of investing in such a stock
and the higher the likelihood for investing more in a particular stock (summarized as the investor
behaviour).
The relationship between investor behaviour and securities market participation on the
NSE
The results of the findings indicated that there was a positive correlation between investor behaviour and
securities market participation on the NSE; the higher the risk perception, the lower the likelihood of
investing in a particular stock and the lower the risk perception, the higher the likelihood of trading
more.
As argued by Eisenberg, Baron, and Seligman (1998), where investors with extreme emotions (anxiety
and depression) are seen to have high risk perceptions and tend to be risk averse there by reducing their
possibility to invest in a given stock while when investors are over confident with their
abilities/information about a particular stock, they attach a low risk perception hence trading more in
such a stock. Though contrary to Schaninger (1976)’s assertion to where perceived risk negatively
correlated to self-esteem, rigidity and risk taking but positively correlated to anxiety.

33. 33
The extent to which Financial Literacy, investor behaviour affects the rate of securities
market participation on the NSE
Findings showed that both investor awareness and investor behaviour had an impact on the rate of
securities market participation: Despite, awareness being a better determinant of stock market
participation than the investor behaviour, financial awareness was also a significant determinant of stock
market participation.
The findings were in line with Littere (1965): Ricciardi (2008) where interpretations of information by
investors about the stock market is seen to differ and can be influenced by factors such as their
knowledge, and their feelings/ attitudes among others. However, to some investors the information may
be disregarded if it is inconsistent with the perceived "story." What one person perceives can differ from
what another person perceives, even though the information is the same (Litterer 1965; Ricciardi 2008).
And this makes investor awareness a more realistic determinant of securities market participation
compared to subjective evaluations of perceived risk attitudes/investor behaviour.
Conclusions
On the stock market, investors tend to have a local bias where investments in local stocks are more
preferred than foreign stocks hence a low perceived risk for such stocks and higher likelihood for
investing in those stocks.
Research has shown that investors are more likely to invest in stocks where performance is over long
periods due to a lower risk perception than when presented with a succession of short period returns.
And when making decisions, people tend to be influenced by what can be readily remembered; much-
highly publicized events such as stock market crashes.
Investor behaviour on the stock market is seen to be driven by irrational influences. Investor behaviour
on the stock market is often seen to be a factor of cognition, emotion and social influences. And the
incorporation of psychology attempts to explain how perception of investors and their reaction to
uncertainties affect the investment decision.
Recommendations
There should be improvement in the awareness of securities market activities in Kenya. Individuals
should be made financially aware and taught about the stock market activities and its role. This calls for
holding more awareness programs which should evenly be distributed to all counties rather than
centralized.
In order to make trading on the securities market unbiased, investors should be enlightened on the
various listed companies and the products they are trading. This calls for better financial awareness
through having more credible financial intermediaries hence reducing on the predictive skills of
investors leading to a more rational market.

34. 34
There is need for financial intermediaries like brokers to incorporate both technical and fundamental
analysis when analysing stock performance, that is, both past and future market movements should be
incorporated in stock prices. And this will help them provide a more realistic judgment when a buy/sell
of a particular stock should be made.
There is need to build trust on the securities market. Firms trading on the stock market should be urged
by the Capital Market Authority (CMA) to put in place good corporate governance principles and be
accountable to the public. This will help listed firms to improve their performance as well as attract
more investors on the NSE.
Areas for further research
The research concentrated on financial literacy, investor behaviour as factors determining
Securities market participation on the NSE. However, the study recognizes that there are other areas
which need to be explored in explaining the securities market participation on the NSE. The following
areas are recommended for further research
 Investor Trust and stocks trend over time on the NSE
 Investor perception of information disclosed in financial reports and investor behaviour
 The role of affect in investor decision making

35. 35
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Market Participation, Michigan Retirement Research Center Working Paper WP 2007-162

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Dohmen, Thomas, Armin Falk, David Huffman, Uwe Sunde, Jurgen Schupp, Gert G. Wagner.
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37. 37
Appendix 1: Questionnaire
KENYATTA UNIVERSITY SCHOOL OF ECONOMICS
DEPARTMENT OF APPLIED ECONOMICS
Dear respondent,
This instrument is designed to facilitate collection of data on Financial Literacy, Securities Market
Investor Behaviour and Securities Market Participation: A Case of Nairobi Securities
Exchange (NSE)
I am undertaking a study on Financial Literacy, Securities Market Investor Behaviour and
Securities Market Participation: A Case of Nairobi Securities Exchange (NSE) and I have chosen
you as a respondent. The knowledge and experience you have in this area is vital in providing the
necessary information to make this study a success. This study is carried out purely for academic
purposes and the information given will be treated with confidentiality and for only the purposes of this
study. This is therefore to request for your time in answering this questionnaire. Thank you very much.
PART A: GeneralInformation
Please tick where appropriate
A1. Age of respondent
18-27 years 28-36 years 37-46 years above 46 years
A2. Sex of Respondent
Male Female
A3. Highest Level of Education Attained
Primary Secondary Certificate& Diploma Degree &above
A4. How much do you earn monthly?
Less than 50,000
51,000-100,000
101,000-1,000,000
1,000,000&above

38. 38
A5. For how long have you traded on the NSE?
1-3 years 4-6 years 7-9 years 10 years &above
A6. Which stocks are you trading in?
a. Barclays Bank share
b. British American Tobacco share
c. Centum investment co. ltd share
d. NIC Bank share
e. EABL share
f. Equity Bank share
g. Jubilee holdings share
h. KCB share
i. Kenya Airways share
j. Nation Media Group share
k. Kenya Re-Insurance Corporation share
l. Trans-Century Ltd share
m. CFC Stanbic Bank share
n. Mumias Sugar Share
A7. The Brokerage firm trading with
a. Dyer & Blair
b. African Alliance
c. Kestrel Capital
d. ABC Capital
e. CFC Financial Services
f. Equity Stock Brokers
g. Kingdom Securities Ltd
h. Standard Investment Bank
A8. How often do you trade on the NSE?
a. Weekly
b. Monthly
c. Quarterly
d. Semi annually
e. Yearly

39. 39
PART C:Financial Literacy
C FinancialLiteracy Strongly
Disagree
(1)
Disagree
(2)
Not sure
(3)
Agree
(4)
Strongly
Agree
(5)
FL1 I am somewhat knowledgeable of
securities market activities on the NSE
FL2 I usually follow the securities market
through Financial news on TV at least
twice a week
FL3 I usually follow the securities market
through financial news papers every
week
FL4 I clearly understand the role of
brokerage firms in listing on the NSE
FL5 I easily access the latest reports,
prospectus and financial statements of
any company on the NSE annually
FL6 I always have trust when trading on
the NSE
FL7 I usually attend seminars, conferences
& workshops hosted by the NSE at
least 3 times a year
FL8 I usually visit the NSE website (at
least every 3 months)
FL9 The NSE often holds educational
programmes to sensitize the public on a
quarterly basis
FL10 My peers influence my participation
on the stock market
FL11 Companies listed on the NSE publish
financial statements more frequently
(every 3 months)
FL12 When seeking financial advice, I deal
with licensed brokers, intermediaries

40. 40
or financial services companies
FL13 The NSE gives reports on corporate
developments of various companies
listed on a timely basis
FL14 I have trouble paying attention to the
information on the stock market
PART D: Securities MarketInvestorBehaviour
D Investor Behaviour Strongly
Disagree
(1)
Disagree
(2)
Not sure
(3)
Agree
(4)
Strongly
Agree
(5)
CP1 I always use predictive skills to time
and outperform the market
CP2 I usually base on the purchase price
of stocks as a reference point in
trading
CP3 My trading on the NSE is usually
determined by past experiences in
the market
CP4 I usually consider public information
(news) when trading stocks
CP5 I always look at and analyse
company news prospects before
making a decision to buy or sell
CP6 I am more comfortable investing in
shares of local companies than
foreign companies
CP7 I always separate stocks while
trading on the stock market
depending on their performance
CP8 I usually buy shares based on future
expectations rather than past
performance

41. 41
CP9 I often prefer to invest on a short
term horizon on the stock market
CP10 I always prefer holding on to looser
stocks and selling winners
SE1 I often blindly imitate decisions of
others when making investment
decisions
SE2 My decision to buy /sell greatly relies
on personal feelings
SE3 I often consider the information that
majority of investors focus on as a
basis of trading on the stock market
SE4 I usually tend to sell looser stocks
and hold on the winners when
trading
SE5 My decision to buy/sell stocks is
largely based on emotions
PART E: Rate of Participation at the Securities Market
E Rate of Participation Strongly
Disagree
(1)
Disagree
(2)
Not sure
(3)
Agree
(4)
Strongly
Agree
(5)
PR1 I usually have a fear to invest in
stocks that have a sure gain
PR2 I am hopeful when undertaking
investment in stocks that have
exhibited a sure loss
PR3 I am cautious about stocks which
show sudden changes in price or
trading activity
PR4 I usually have worry investing in
stocks that have had a past negative
performance in trading

42. 42
PR5 My investment in stocks is largely
based on investment knowledge,
experiences and education
PR6 I am always attracted to investing in
stocks
PR7 I usually consider the credibility of
brokerage firms that provide the
financial services
PR8 I can easily ascertain the expertise of
the brokers offering service
PR9 It is always easy to determine the
credibility of the stock market
PR10 I can easily tell the reputation of
brokerage firms staffing service
PR11 I feel that the idea of participating in
a buy/sell on the stock market is
appealing
PR12 I am usually at ease with the stock
trading system on the NSE
PR13 I am often not afraid to invest in
stocks that have shown a past
positive performance in trading
PR14 I feel regret of a drop in the price of
a stock I have purchased
THANK YOU VERY MUCH

43. 43
Appendix 2: Coding
KEY
F- Female
M- Male
Serial Number ID Sex Age Column1 Column2 Column3 Education level Column4 Column5 Column6 Column7 Monthly Income Column8 Column9 Column10
18-27 28-36 37-46 above 46yrs Primary SecondaryCertificate & DiplomaDegree & Above <-50000 51000-100000101000-10000001000000->
1 1 M 0 1 1 1 0 0 1 1 1 1 0 0
2 2 M 0 1 1 0 0 0 1 1 1 1 0 0
3 3 M 1 1 0 1 0 0 1 1 0 1 1 0
4 4 M 0 1 1 1 1 1 0 0 1 1 0 0
5 5 F 0 1 1 0 1 0 0 0 1 0 1 0
6 6 F 1 0 1 1 0 1 1 0 0 0 1 1
7 7 M 1 1 1 1 0 0 0 1 1 1 1 0
8 8 F 1 1 0 1 0 0 0 1 1 0 1 0
9 9 M 1 0 1 1 1 0 0 1 0 1 0 1
10 10 F 1 0 0 1 0 0 1 1 0 1 1 0
11 11 M 1 1 1 1 1 0 1 1 1 1 0 1
12 12 M 1 0 0 0 1 1 1 1 0 0 0 1
13 13 F 0 1 1 0 1 1 1 0 0 0 0 1
14 14 F 1 1 1 0 1 0 0 1 0 0 1 1
15 15 F 1 1 1 1 1 1 0 0 1 1 1 0
16 16 F 0 0 0 1 0 1 0 1 0 1 1 0
17 17 F 1 1 1 1 1 1 1 0 1 1 0 0
18 18 M 1 1 1 1 1 0 1 0 0 1 0 1
19 19 F 0 0 1 1 0 0 0 1 1 0 1 0
20 20 M 1 1 0 1 1 0 1 0 1 1 1 1
21 21 F 1 1 0 0 1 1 1 1 0 0 0 0
22 22 M 1 1 1 1 0 1 0 1 1 0 0 0
23 23 M 1 1 1 1 1 1 1 1 1 0 1 1
24 24 F 1 0 1 1 0 0 0 0 0 1 1 0
25 25 F 1 1 1 1 0 1 0 0 0 0 1 1
26 26 M 1 0 1 1 1 0 0 1 1 1 0 1
27 27 F 1 1 1 1 1 1 1 1 1 1 1 1
28 28 M 1 1 1 1 0 1 1 0 0 1 0 0
29 29 F 0 1 1 1 1 1 1 1 1 1 0 1
30 30 M 1 1 1 0 0 1 0 0 1 0 1 0
31 31 F 1 1 1 1 1 0 0 0 0 0 1 0
32 32 M 1 0 0 1 1 1 1 1 0 0 0 1
33 33 F 0 0 0 0 1 1 1 1 1 1 1 0
34 34 F 1 1 1 1 1 1 1 0 1 0 0 0
35 35 F 0 1 1 0 1 0 1 1 0 1 0 0
36 36 F 0 0 0 0 0 0 1 0 0 0 1 0
37 37 M 1 1 1 1 0 1 0 1 0 0 1 1
38 38 F 1 0 0 0 1 1 1 1 0 0 1 0
39 39 M 1 0 0 1 1 0 1 1 1 0 0 1
40 40 F 1 1 1 1 1 0 0 0 0 0 0 0
41 41 M 1 1 1 1 0 1 0 0 1 1 0 0
42 42 F 1 1 1 1 0 0 0 1 1 0 0 0
TAB UL ATION OF R E S UL TS