Risk and Return Analysis of Equity Shares with Special Reference to Companies (BSE) Stock Index

Abstract

Analysis of risk and return of individual stock is primary steps of every investor before making investment. The main purpose of individual investor is maximizing wealth in a low level of risk. But it is very difficult to find out such investment avenue from the pool of investment avenues. In Bombay stock exchanges there are more than 5500 companies listed and 30 companies are considered as blue chip companies. This paper studies about risk and return analysis of these blue chip companies. Here data were collected highly authenticated websites such as BSE official website and money control.com. In order to analyze the risk and return of individual stock some of the statistical tools were used like Standard deviation, Correlation and CAPM model. The main objective of this paper is to find out risk return parity in the individual companies which are considered in the calculation of SENSEX index.