Abstract: Risk and return analysis plays a key role in most individual decision making process. The present paper investigates the study on relationship between risk and return of selected stock from two different sectors on NSE with the help of Capital Asset Pricing Model (CAPM). This empirical paper has been done by analyzing in selected stocks from sectors such as Information Technology and Pharmaceutical sector. Five stocks in each sector have been taken for the sample. Information Technology sector is considered to be one of the fastest growing sectors in any developing and even in a developed country. As global economies are getting integrated, technology companies are finding it an over task to align to the changing realities. In such a scenario, analyzing stocks from the Pharmaceutical sector requires utmost caution and understanding. By analyzing the stocks from two different sectors, investors will find beneficial in which sector to invest. The risk and return analysis linked with any industry reveals the intricacies involved with the particular industry. A study revealed that Information Technology sector showing the positive return and low risk and Pharmaceutical sector showing negative return and high risk during the study period.
Keywords: NSE, Risk, Return. CAPM, Expected Return, Beta, Standard Deviation.
Title: A Comparative Study on Risk and Return Analysis of Selected Stock in Indian Market -Using Beta Capital Asset Pricing Model
Author: Shrusti Bohra, Dr. Taral M Patel
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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