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“Critical Evaluation: capital asset pricing model with reference to selected companies”

Submitted to RTM NAGPUR UNIVERSITY in partial fulfillment of the academic requirements for the award of the degree of


Submitted by Nidhi V. Choudhari

Under The Guidance Of Dr. Pravin T. Bagde

Synopsis “Critical Evaluation: capital asset pricing model with reference to selected companies” Submitted to RTM NAGPUR




In finance, the Capital asset pricing model (CAPM)

is used to determine a theoretically

appropriate required rate of return of an asset, if that asset is to be added to an already well- diversified portfolio, given that asset's non-diversifiable risk. The model takes into account the asset's sensitivity to non-diversifiable risk(also known as systematic risk or market risk ) , often represented by the quantity beta (β) in the financial industry, as well as the expected return of the market and the expected return of a theoretical risk-free asset.

Objectives of the Study

1. Analyse the dividend policy adopted by the Tata Motors.


To study the future impact

on the dividend policy on market price of shares of Tata


Scope of the Study


The study will be carried out for Tata Motors as it is public limited company and


dividends are given regularly The study will be carried out for 5 years as the period of 5 years is sufficient for studying dividend policy.

Research Methodology

Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods/technique but also methodology.

Data Collection

Data collection is a term used to describe a process of preparing and collecting data - for example as part of a process improvement or similar project. The purpose of data collection is to obtain information to keep on record, to make decisions about important issues, to pass

information on to others. Primarily, data is collected to provide information regarding a specific topic.

Primary Data: - The Primary Data will be collected through Interviews.

Secondary Data: - The Secondary Data will be collected from Newspapers, Magazines, Reports etc.


Researcher proposes following hypothesis.

Dividend policy has an influence on market price of share.

Chapterisation Scheme

  • 1. Introduction

  • 2. Company Profile

  • 3. Research Methodology

  • 4. Literature Review

  • 5. Data Collection & Analysis

- Hypothesis Testing

  • 6. Conclusions & suggestions

  • 7. Limitations Bibliography & References


1) Books:

Financial management by- M.Y. Khan & P.K. Jain

Financial management by- Ravi M. Kishore

Research Methodology by C.R. Kothari (Wishwa Prakashan, 2 nd edition)

2) Websites:



Dr. Pravin T. Bagde

Place: Nagpur


Mr. Mahesh S. Bhadule