Abstract
Abstract: This study aims to analyse investment risks nature and sources in Islamic FinancialProducts and its Ethical counterpart arising from its investing, and also to demonstrate theimpact of their performance and risks measuring on the investor's behavior. Secondly, ThePerformance analysis method is used to compare the two selected benchmarks chosen fromamong the (DJIM) family of the Canadian Stock Market, utilising daily data of the close pricesof the Islamic index (CANI) and its Ethical counterpart (CAN) covering the period from(January 2005 to December 2015). The results show that the Islamic index (CANI) outperformand was more volatility sensible than its Ethical counterpart (CAN), particularly during theperiod of the Sub-prime Crisis in 2008. Finally, the analysis of the correlation rate shows thatthere was no significant link between the studied indices and US (T-Bill), which denies theexistence of the benchmark price risk. The study affords some of recommendations amongthem: improving the competitiveness in the Islamic Financial Markets (a), by using ModernInformation Systems (b) and the independence of Shariah Boards of Islamic Banks (c), tomanage and hedge risks.
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