Risk Return

To day the avenues for investment are abundant like bank deposits, property insurance, shares etc. but taking an investment decision would be more critical. Analysis the risk associated with every investment option and evaluate the return out of that investment become very crucial .since the globalization and the privatization move of the Indian economy during the last decades of the 20 th century pumped billions of foreign capital into the Indian economy as in the form of FDI and FII that could be one reason to drive the Indian economy into newer heights .Indian stock market also part of this unparallel growth. The confidence of primary and secondary market investors also increased several fold, these changing scenario encourage people to invest more in shares and bond who earlier park their saving as fixed deposits and other type of investment like property ,gold etc,

The topic ‘risk and return analyses relevant in this circumstance .i have been selected five sectors which have an important role in propelling Indian growth engine. The sectors are banking, pharmaceutical, automobile, information technology, automobile and oil and gas sector. These entire five sectors have a different perspective in terms of profit making, growth, employment generation etc.
The stock price where taken from the S&P CNX Nifty .the stock price for the
different months .for calculating beta and standard deviation mathematical formula being used. The beta and standard deviation helps to find out total risk and systematic risk The main objectives are to calculating the beta and variance to help the investors to arrive at a decision of invest in the shares which offer maximum return with minimum risk and also to gain knowledge of the stock market .the findings and suggestion certainly would be help the investors.

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