Vivek Project Final

CHAPTER 1
INTRODUCTION
Doing project in an integral part of MBA curriculum in VTU. It is an initiative to bridge the gap
between the knowledge and its application and it helps to apply the things in practical like what
we have studied or discussed in the classroom & implement the same concept in the project
report.
This project has been conducted during the 4th semester of MBA program and it has been carried
for a period of 10 weeks on the topic called “THE ANALYSIS OF INVESTORS RISK AND
RETURN ON EQUITY SHARES” at Geojit, Bangalore. It was pleasure to do internship project
report in this company.
During this finance project, I have learnt some basic concepts about stock market and also some
information about derivative market and its product. The resolution of the study is to empower
the students to realize the practical world.
INDUSTRY PROFILE
The capital market reforms were initiated in 1991, as part of the structural reforms comprising
industrial deregulation, privatization, and financial reforms through liberalization of domestic
economic policies and foreign exchange policies.
Capital is a vital factor of production, necessary for economic development. A marketplace for
raising funds, for capital formation and investment, is stated as capital market, is so terribly
important for economic development of any country. Investment comes from savings and also
the mobilization of savings may be a major operate of the capital market.
Capital market may be a wide term use to comprise all operations within the new problems and
securities market. New problems created by the businesses represent the first market, whereas
commercialism within the existing securities relates to the secondary market. whereas we are
able to solely stock the first market, we are able to obtain and sell securities within the secondary
market.
Capital market so provides funds from public who are measure savers to investors. The surpluses
of the house sector and foreign sector square measure accustomed meet the deficits of the
government. and business, who invest more than they save, or pay more than their financial gain.
Besides the allocation of the funds and flow of funds from less profitable to additional profitable
avenues and intercession between savers and investors square measure the functions of the
capital market.
CAPITAL MARKET
Capital market is wide term use to comprise all operation in the new issue and securities market.
New issue created by the businesses constitutes the first market, whereas commerce in the
existing securities relates to the secondary market.
The term capital market encompasses all operations of F.I.s, banks, etc. At the long finish of
spectrum of maturities. The demand and supply for long run funds square measure mirrored in
the capital market, that may be a marketplace for borrowing and landing for more than one year.
Indian capital market’s land marks and development:
 Amendment to banking regulation act in 1983 permitting banks to undertake non-banking

functions like merchant banks and mutual funds who started operations in the capital
market through their subsidiaries.
 Entry of public sector banks through mutual funds in a big way since 1987 for channeling
small saving into the capital market.
 Setting up of the SEBI by the govt. in 1988 to oversee capital market.
 Establishment of SHCIL (Stock Holding Corporation India Ltd) by all India Financial
Institutes (AIFIs) & books introducing a new concept depository functions & book
keeping for stock market dealings of the sponsoring institutions.
 Setting the credit rating agencies, namely, CRISIL, ICRA, CARE, etc. from 19988
onwards popularizing the credit rating functions by companies issuing debt instruments.
 Introducing a new tier to the capital market structure OTCEI was set up in1989
operations in 1982.
STOCK MARKET
INTRODUCTION;
Stock exchange are the foremost good style of the marketplace for securities positively govt. and
semi-govt. groups or alternative public bodies also for shares and debentures issued by the joint-
stock firms. In the securities market, purchase and sales of shares are created in conditions of
free competitions. Govt. securities are traded outside the mercantilism ring in the form of over
the counter sales and purchases.
ORIGINS OF THE INDIAN STOCK EXCHANGES;

The origin of the securities market goes back to the time when securities represented the property
and promise to pay wherever initial issue had been transferable from one person another.
The earliest recorded securities market dealings in India were transactions in loan Stock
Exchanges of the East India company, towards the end of the eighteenth century. Wide ranges of
the banks and cotton mills securities were being traded in Bombay and Calcutta by 1830. The
company’s act 1850 introduced a new concept of limited liability with sole motive with
simulating activities in securities market.
During the boom 186-1900 brokers and bank managers were a privileged and a decent category
and police had solely “Salam” for them. once the war, brokers were thought of as a social
nuisance and were driven from post to pillar. They were shifted from place to position. Finally,
they found in a street referred to as ‘Dalal Street’ wherever they transacted their business.
STOCK EXCHANGE
“Stock exchanges suggests that anybody or individuals whether incorporated or not, accepted for
the business of buying, merchandising or dealing in securities”. it's an organization of member
dealers for the aim of self-regulation and reserves the interests of its peoples.
It will be operated only if it's recognizing by the govt. below the securities contracts (regulations)
act, 1956. The identify is granted below sec three of the act by the central government.
FUNCTIONS OF THE STOCK EXCHANGE

 Provides space for the buyers and sellers
 Regulation of the market
 Efficient allocation of capital market
 Market surveillance to monitor the prices of securities
 Education role
 Secondary market function
 Handling compliances and grievances
 Heathy distributions of new securities
 Expert investment advice
 Balance in fluctuations of prices
BOMBAY STOCK EXCHANGE (BSE)
Bombay stock exchange restricted is that the oldest securities market in Asia with an expensive
heritage. Generally referred to as “BSE”, it had been set up as “the native shares and stock
brokers association” in 1875. It's the first securities market within the country to get perpetual
identify 1956 from govt. of India below the securities contracts(regulation) act,1956. The
exchange’s important and pre-eminent role within the development of Indian capital market is
widely identified and its index, Sensex is tracked worldwide. Earlier and association of persons
(AOP), the exchange is currently approach.
Interns of organization framework, the committee formulate bigger policy problems & exercise
over-all control. The groups accepted by committee or board based mostly the director and a
management team of skilled manage the day to day operations of the exchange. The exchange
contains a nationwide reach with occurring with 417 town and cities of India. The system &
processes of trading’s are style to trading market safeness & increase clearness in operations.
During the year 2004-05, the trading volumes on exchange showed strong growth.
The exchange contributes an effective & clear marketplace for trading in equity shares, debt
instruments and derivatives. The BSE’s on-line trading system
(BOLT) is ownership system of the exchange and is BS7799-2-2002 certified. The close
observation & clearing & settlement functions of the exchange are ISO9001:2000 certified.
NATIONAL STOCK EXCHANGE (NSE)

The high power study group on formation of latest securities market popularly referred to as
Pherwani Committee had in 1991 suggested the promotion of a brand new securities market at
new Mumbai as a model security market & to act as the National stock exchange.
In order to supply nationwide securities market facilities to investors, upgrading the facilities &
to carry the Indian capital market in line with the universal markets in 1992, the NSE was
established. The securities market has two separate segments viz, capital market segment and
money market section. Capital market segment would cover commercialism inequities,
convertible debentures, nonconvertible debentures etc. NSE provides access to investors from all
across the country on an equal footing and works as an integral part of the National securities
market system.
The growth of business on NSE since the time when exchange started its operations, i.e., on Nov
three, 1994.Over the amount, the avg commercialism volume has redoubled manifold.
The value of the traded scrip’s during the year 1999-2000 on NSE was eight, 39,052 large
integers (40% of the entire turnover of all the stocks exchange combined in India) compared to
Rs.369052/- (30.49 the entire turnover of all the securities markets combined in India) on the
country’s premium stock market the Bombay stock exchange.
TRADING IN NSE:
NSE was introduced for the first time in India, totally electrical screen based dealings. It uses a
existing, totally processed buying and selling system deliberate to supply investors across the
length and breadth of the country is harmless and guileless thanks to invest.
The NSE dealing scheme known as “National Exchange for machine-controlled trading”
(NEAT) is totally machine self-controlled screen based dealing system, that adopts the principle
of an order operated market.
•Wholesale debit market segment(WDM)
•Capital market segment(CM)
The wholesale debit market segment or market because it is usually observed is a facility of
institutions, banks, company & high network people high enter into great worth dealings in tools
like, govt. securities, treasury bills, public sector unit’s bonds, business papers, certificate of
deposits, etc. Capital market segments covers commerce in equities (presently) convertible
debentures and different innovative monetary instruments.
BENEFITS OF NSE TO TRADING MEMBERS:

 Efficient services to clients
 Savings in man power and establishment costs
 Back office load is reduced as the system generates reports of orders and traders
 High growth in trading volumes as a result of automated trading system
 Establishments of a computer network to receive orders from various locations
 Transparency in the system increase investors’ confidence
 Trading as well as settlement is monitored and regulated by the exchange
ensuring fairness among the members
 Foreign investing community favors an automated and regulated exchange
BENEFITS OF NSE TO INVESTORS:
 Assured of best prices in the market

 Price brokerage is separately shown a contract act
 Time conditions, allow the investors to keep his order open till it is executed
 Quantity conditions ensures that the buyers want the securities in proper
marketable lots as per his requirements
 Date and time of the trade is indicated on the orders and trace confirmation slip,
which provides a power audit trail
COMPANY PROFILE
Geojit financial Services Ltd was founded by C.J.George in 1987 as a proprietorship for doing
Broking business in cochin securities market.The partnership between promoters Mr. C.
J.George and Mr.Ranjit Kanjilal became a sole ownership on Kanjilal’s retirement in
1983.Geojit securities became a company broking house in 1995.
In 1994, the business was confiscated by Geojit securities Ltd, a joint venture between mister. C.
J. George and also the Kerala State Industrial Development Corporation Ltd(KSIDC). In the
following year, the corporate came up with AN Initial Public Offer(IPO) and also the shares
were listed in varied securities market in India in 1995.
Geojit securities Ltd, is growing as a “Financial Supermarket”. This gives all modern financial
capital market services under 1 roof. Geojit securities ltd, is the 1st “on line share broking firm”
in India.
The company stands as the first member of National Stock Exchange(NSE),in Kerala.The 1st
company to give depository services in South India.Geojit securities ltd is India’s 1st internet
brokerage firm.It has been active in the field of capital markets for fifteen years.It is a leading
retail broker listed on major stock exchanges and has 100 offices across the country. Geojit
serves a client base of around one lakh investors. The company has been growing at over three
hundredth annually and incorporates a internet price of over Rs.13 crores. The company
endeavors to provide the best services at the lowest possible cost to investors, well qualified
human resources and constant up gradation of technology support this aim. The company
possesses the largest pool of certified professionals in the Indian stock broking industry.
A Geojit security limited is a well-established corporate sector in the Indian capital market. Its
rate of return is growing per year. Its role in the market and in the worldis expanding. The
company also has an institute named as “Geojit Institute of capital market” also to train Geojit’s
staff to equip them with modern technology for trading and related services. The staff is also
trained for qualifying in the NCFM exam conducted by NSE.
The electronic share trading, including internet based trading and derivative trading are the most
modern operational technique in the capital market. Geojit is the member to start trading in index
Futures & Options being a new concept, investors are hesitating to enter this business. To spread
awareness about the derivatives among investors. Mutual fund is an important tool or product in
the capital market. It has its own mutual fund department. Now all branches are being registered
as per the statutory compliance of the ESI Act, which states that Geojit is a commercial
establishment.
COMPANY PROMOTERS
1. BNP Paribas
2. Kerala State Industrial Development
3. Eldho Abraham
4. C.J. George
5. BNP Paribas India Holding Private
6. Binoy Abraham
7. Shiny George
8. Lazar M A
9. Susan Raju
10. Emily Rajan
11. Jones George C
12. Sara Macheril George
13.Jyothis Abraham George
14. Sally Sampath
VISION AND MISSION

VISION:
 The vision of Geojit is to be leading financial and commodities markets intermediary for
individual and institutional clients from India and overseas.
 They continually strive to raise their products and services standards by intelligent
application of technology and processes.
MISSION:
 To understand and respect customers’ needs to consistently deliver total quality

solution through constants skills up-gradation.
 To believe that the company culture helps to attract and retain best talent.
 To freely share their investments experience across all ages and strata of society to
encourage wise investments for a better future.
Quality policy
Talented, efficient and element team of youngsters rolling out high position application for the
world profession, keeping in mind true quality, total customers satisfaction, delivering on time,
every time.
They are forever effort for continuing development and improvement of our own set values in
succeeding total quality management.
The quality of the merchandise and services provided by Geojit to clients is that the concern of
each workers within the organization. All are therefore creative thinking concerned in on
condition that top quality merchandise and services through;
Responsiveness to client wants
Provision of labor satisfaction and promising careers
Constant measuring and observation of all operation
Continuous improvement of procedures, merchandise and services
Performance of operation in an exceedingly accountable manner
PRODUCTS / SERVICES PROFILE
Following are the various product and services of Geojit
1. Equity
a) NSE
b) BSE
c) Net Trading
2. Derivatives
a) Index futures
b) Index options
c) Stock futures
d) Stock options
3. Margin trading and funding scheme
4. Loan against share
5. Loan for commodity trading
6. Depository services
a) Internet services
b) DEMAT
c) All DP services are available at all the branches
d) Delivery of shares with the help of internet
e) Off market transaction
7. Portfolio management services
8. Fixed deposits
9. Non-convertible debentures
10. Distribution
a) Initial public offering (IPO)
b) Mutual funds
c) Corporate bonds and government securitiesd) Life & general insurance product
AREA OF OPERATION
Globally
 Dubai  Ras Al-Khaimah
 Abu Dubai  Sharja
 Bahrain  Muscat
 Kuwait  European country
Nationally
 Delhi  Andhra Pradesh
 Karnataka  Uttarakhand
 Goa  West Bengal
 Tamilnadu  Bihar
 Pondicherry  Haryana
 Maharashtra  Jammu & Kashmir
 Gujarat  Orissa
 Uttar Pradesh  Punjab
 Kerala  Rajasthan
 Madhya Pradesh
Regional
 Bangalore
 Belgaum
 Dawangere
 Mysore
 Mandya
 Hassan
 Dharwad
 Mangalore
 Bagalk
OWNERSHIP PATTERN
Sl.No Contribution Percentage

1 Shareholding of promoter and promoter group
a) Indian
i. Individuals 20.64%
ii. Corporate bodies 8.93%
b) Foreign
i. Corporate bodies 34.22%
2 Public share holding
a) Foreign institutional investors 2.34%
b) Non institutions
i. Body Corporate 16.61%
ii. Directors and their relatives 13.15%
iii. NRI 2.92%
iv. Clearing members 1.19%
TOTAL 100%
INFRASTRUCTURAL FACILITIES
 Geojit provides online trading services to the clients
 The co provides the various services such as,
 Sending mails everyday about transaction details to the client’s ID
 Company staff will provide information through telephone
 The company also provides security to the clients
 Company gives more importance to the cleanliness
 Geojit also provides allowances facilities such as:
 Travel allowance
 Medical allowance
 House rental allowance
 The company also facilitate mobile applications like SELFI,
 Company also provides refreshments for clients
 Tax saving schemes
 Equity linked savings scheme
 Some of the bonds to reduce the risk of tax
i. Govt. bonds
ii. Rural electrical company
iii. National high way authority of India
iv. Indian railway financial corporations
COMPETITORS DETAILS
Category ‘1’
(these are the firm which provides DMAT, trading and along with the banking facilities)
 ICICI Direct
 Kotak securities
 HDFC securities
Category ‘2’
(these are the firm which provides DMAT, trading facilities)
 Sherkhan stock broking limited

 AnandRathi stock broking limited
 India info line Broking Limited
 Indian Bulls
 Edelweiss Limited
 Angle Broking limited
 Zerodha
 Ventura
 RK Global
 Karvy
SWOT ANALISIS
STRENGTH
 Geojit has an International expertise
 It facilitates multichannel services in order to support the clients through internet, mobile
and local office etc.
 It has above 550 offices, about 300 cities across India
 It works for around 776000 trades
 It has constantly been an initiator there by, has taken an advantage of 1st mover in
financial services
 The company has qualified, experienced, well trained and industry certified employees
 It offers wide range of products or services
 It also creates a large employment opportunity
 It has developed mobile application like selfie
WEAKNESS
It has less perforation (in some region of the country)
Lack of awareness among investors because of low promotion.
Lack of proper training.
OPPORTUNITY
 It provides customized and cheaper services through growing rural market
 Geojit has an opportunity to increase an investor by providing an education regarding
stock market trading.
 Geojit can attract the customers through its various products and services offered.
THREATS
 The major threats are banks
 entry of large number of competitors
 The company services mainly based on the investors and markets trends or conditions.
 There are some strict procedures of SEBI
 It involves inflexible economic measure by government and RBI increases entrance of
Foreign Finance companies in Indian market.
FUTURE GROWTH AND PROSPECTUS

i. The company’s main target is to become a number 1 stock broking company in
India.
ii. They are planning to increase the market share in India.
iii. They are focusing on insurance advisory services and currency trading.
iv. They are focusing more on retail and institutional investors by facilitating more
products or services.
v. Company focusing on developing a research team in technical and fundamental
analysis.
vi. Geojit has opportunities to increase in insurance and mutual funds.
vii. They are also planning to increase the more number of branches.
viii. They are planning to invest for improving the technology.
FINANCIAL STATEMENTS:
Profit and Loss Account as on 31st March 2017 to 2013

Particulars 31-Mar-17 31-Mar-16 31-Mar-15 31-03-14 31-Mar-13
1. Revenue from
2,443,463,004 2,172,981,063 2,720,222,326 1,730,271,174 1,978,380,998
Operations
2. Other Income 224,035,452 190,680,131 172,445,277 229,172,565 349,554,221
3. Total Revenues (1+2) 2,667,498,456 2,363,661,194 2,892,667,603 1,959,443,739 2,327,935,219
4. Expenses:
(a) Operating Expenses 562,012,097 487,783,461 609,759,823 394,398,887 725,196,680
(b) Employee Benefit
803,258,539 765,242,451 748,787,734 579,077,359 494,457,378
Expenses
(c) Finance Costs 5,310,734 7,266,142 10,373,893 7,525,328 7,882,110
(d) Depreciation and
123,850,231 113,192,479 84,798,218 95,347,596 112,904,352
Amortization Expenses
(e) Other Expenses 432,650,135 444,868,096 428,474,129 381,586,724 430,822,383
Total Expenses 1,927,081,736 1,818,352,629 1,882,193,797 1,457,935,894 1,771,262,903
5. Profit Before
Exceptional Item and 740,416,720 545,308,565 1,010,473,806 501,507,845 556,672,316
Tax (3 – 4)
-
6. Exceptional Item -100,000,000 -
1,119,339,780
7. Profit / (Loss) Before
640,416,720 172,580,000 323,840,000 -617,831,935 556,672,316
Tax (5+6)
8. Tax Expenses:
(a) Current Tax
256,970,000 16,766,000 11,160,000 156,919,000 160,300,000
Expenses
(b) Deferred Tax
1,000,000 189,346,000 335,000,000 16,000 -23,272,000
Expenses / (Credit)
Net Tax Expenses -707,000 355,962,565 675,473,806 156,935,000 137,028,000
9. Profit / (Loss) for the
383,153,720 -774,766,935 419,644,316
Year (7 – 8)
10. Earnings per Equity
Share (Face value of Rs.
1/- each)
(a) Basic 1.63 1.53 2.94 -3 2
(b) Diluted 2 1.52 2.92 -3 2
Balancesheet as on 31st march 2013-to 2017
RATIOS
1. Current Ratio = Current Assets/Current liabilities
Particulars Current Assets Current Liabilities current ratio

2017 645.96 244.4 2.64
2016 480.64 164.12 2.92
2015 496.45 208.74 2.37
2014 496.78 248.6 1.99
2013 597.47 211.43 2.82
Current Ratio
2.92 2.82
3 2.64
2.37
2.5 1.99
2
1.5
0.5
0
2017 2016 2015 2014 2013
Interpretation:
From the above chart, the current ratio is varies from one year by year. However, it reached its
ideal ratio of 2.92 during 2016, which shows that the company is in good solvent position.
Proprietary Ratio = Shareholders fund/Total assets

Particulars Shareholders fund Total Assets proprietary ratio
2017 512.41 818.26 0.62
2016 490.37 704.84 0.69
2015 468.52 721.7 0.64
2014 434.42 722.82 0.6
2013 469.28 174.21 0.64
proprietory ratio
0.69
0.7
0.68
0.66 0.64 0.64
0.64 0.62
0.62 0.6
0.6
0.58
0.56
0.54
2017 2016 2015 2014 2013
Interpretation:
From the above chart, the company proprietary ratio in the year of 2013 is 0.64 in the year 2014
the ratio has diminishing to 0.6, in the year 2015 ratio has improved to 0.64, in the year 2016 ratio
has again improved to 0.69, in the year 2017 the ratio has come down to 0.62 percent. Finally, the
company capital structure ratio fluctuating by every year this ratio shows that the company
shareholders fund increasing year by year it indicates that company performance well.
3.Current assets of fixed assets ratio = Current Assets/Total Assets
Particulars Current Assets Total Assets current assets of fixed assets ratio
2017 645.96 818.26 0.78
2016 480.64 704.84 0.67
2015 496.45 721.7 0.68
2014 496.78 722.82 0.68
2013 597.47 174.21 0.81
current assets of fixed assets ratio
0.9 0.81
0.78
0.8 0.67 0.68 0.68
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2017 2016 2015 2014 2013
Interpretation:
From the above chart, the company current fixed assets ratio is in the year of 2013 is 0.81and the
year 2014 & 2015 the ratio has maintain the 0.68, 78in the year 2016 ratio has go down to 0.67, in
the year 2017 ratio has again increased to 0.78. Finally, the company capital structure ratio
fluctuating by every year this ratio shows that the company shareholders fund increasing year by
year it indicates that company performance well.
CHAPTER 2
CONCEPTUAL BACKGROUND AND LITERATURE REVIEW
BACKGROUND OF STUDY
Every monetary decision contains a part of risk and a part of return. the connection between risk
and return exists within the kind of a risk-return trade-off, by that it's meant that it's only
attainable to earn higher returns by agree to receive higher risk. If an capitalist desires to earn
higher returns, then the capitalist should appreciate that this can only be achieved by agree to
receive a corresponding increase in risk. Risk and return are absolutely correlated; a rise in one is
among a rise within the different.
In financial management nowadays the treatment of risk is that the main part in monetary call
making. Key current questions involve however risk ought to be measured, and the way the
desired return related to a given risk level is decided. However, risk didn't continuously have
such a outstanding place. before 1952 the risk part was typically either assumed away or treated
qualitatively within the monetary literature.
A monetary conclusion usually involves risk. let's say, a corporation that borrows funds faces the
danger that interest rates could modification, & a corporation that builds a replacement factory
faces the danger that product sales is also less than expected. These and lots of different
selections involve future funds flows that are risky. Investors usually dislike risk, however
they're conjointly unable to avoid it. The valuation for shares and debt securities shows that the
value of a risky product depends on its expected future money flows, the duration of cash, and
risk. to create effective monetary selections, managers got to perceive what causes risk, however
it ought to be measured & also the impact of risk on the speed of return needed by investors
(Peirson, Brown, Easton, Howard, and Pinder, 2011).
Risk and return analysis

Risk:
Risk suggests that you've got the likelihood of losing some, or maybe all, of your original
investment. Low level of uncertainty is related to low potential returns; High level of uncertainty
are related to high potential return. Finally, risk suggests that uncertainty of investment method.
 Risk returns to dispersion of a variable.

 It is measuring the Standard deviation.
 Variance is the sum of deviation of actual return from average return.
 Standard deviation=(variance²)½
Types of Risk
1. Systematic risk
2. Systematized risk
Systematic risk:
Additionally, referred to as "market risk" or "un-diversifiable risk", systematic risk is that the
uncertainty intrinsic to the complete marketplace or entire marketplace section. Additionally,
mentioned as volatility, systematic risk is that the everyday fluctuations during a stock's value.
Volatility could be a live of risk as a result of it refers to the performance, or "temperament," of
your investment instead of cause for this behavior. As a result of market movement is that the
reason why individuals will create cash from shares, fluctuation is decisive for returns, &
therefore the additional unstable the investment the additional probability there's that it'll
expertise a affected modification in either direction.
international
int rate risk
events
industrial
market risk
risk
political risk
Un systemized Risk:
Additionally, referred to as "specific risk," "diversifiable risk" this kind of uncertainty comes
with the corporate or business you invest in & may be reduced through diversification. as an
example, news that's specific to little variety of stocks, similar to an unexpected strike by the
workers of an organization you've got shares in, is taken into account to be un systemized risk.
Business risk
Non
Industrial
disputes systemati Financial risk
c risk
Uncertainity
Return:
A return is that the gain or loss of a security in a very specific duration. The return consists of the
financial gain & therefore the capital gains relative on in investment. The overall rules are that a
lot of risk you are taking, the bigger the potential for higher return.
Relationship between Risk and Return
Risk/Return Tradeoff
Less risk
Less return
Return
More risk
More return
Risk
The Risk and Return is one of the main concepts in finance subject. Every financial decision
involves in Risk and return analysis. Every time high return expecting high risk.
In case every investors demand higher return the risk level is also high. The risk and return both
have a direct relationship. The investors measure this relationship and use that measurement to
build an appropriate risk and return.
CAPM: CAPM is measuring the relationship b/w the probable return for assets and systemized
risk.
Calculation of CAPM(SML) Model Ri = Rf + Beta ( Rm-Rf )
REVIEW OF LITERATURE
 Bedanta Bora and Anindita Adhikary: 2011: (Dept. of management studies, Sikkim
Manipal University)
The risk and return is characterized by stock market investment. The return is yield to capital
appreciation. Risk is uncertainty of the future outcomes. The two types of risk are one is systematic
risk and another one is unsystematic risk. Risk analysis and return both have an uncertainty and it
is not measured easily, totally the study s-ays, high risks create a high return low risk create a low
return.
 Dr Narayanasamy, Ms. R.Thirugnanasoundari March to April 2016 - it'll be ready to

verify the market value and trading volume for the stock, high and low value for the stock
over totally different periods and therefore the earnings for the corporate. the current study
during this context has relevancy in explaining the parity between risk and return within
the Indian equity market he analysis of testing the link between risk and return within the
Indian securities market reveals that of all the various risk variables thought of within the
study.
 Narayan Gaonkar31 Dr. Kushalapp March’ 2015 -The study is undertaken with the
most objective of crucial the risk return profile of thirty stocks listed on NSE. Only thirty
prime firms shares listed on NSE are thought-about during this paper. To check the
variation within the stock returns for the study period of 1 years. To rank the businesses
on the idea of return and risk to seek out the risk and return of portfolio consisting of thirty
stocks and compare it with risk and return of individual stock. to supply meaningful
suggestions to the investors regards the findings of the study.
 Franco painter and Gerald A Pogue (1983): Risk is that the main part in monetary higher
cognitive process. everybody should be expecting high return. He says that portfolio theory
deals with the measuring of the link between risk and return. It's involved with the
suggestive for security costs of the portfolio finding created by investors.
 Dr S krishnaprabha Mr M vijayakumar 2013- to create comparative study of risk and

return of chosen company stocks. To seek out the quality deviation and variance of the
stocks. future investors were able to make the most of the market because it less volatile.
based on this idea in banking and automobile sector high risk provides low returns and in
info technology. Alpha stock is positive and therefore the firms are freelance to promote
return and have a profitable return.
 Ananda mukarji: American state A&M International University

The risk and return relationship has an uncertainty. three kinds of risk and return relationship are
there, positive relationship, negative relationships and curving relationship. He says that risk and
return relationship that means a negative risk and return relationship below and higher than the
failure and success reference points and a positive relationship in between the 2 points professional
person also as analysis implications are mentioned.
 Kolani pamane& Anani Ekoue Vikpossi: 2008
Risk and return is one among the foremost necessary ideas within the investment method. it's
pillar of the many investment model. Risk is calculated by beta. Returns embrace residual
variance of stock. Risk and return effectively in order that the investors who would like to
participate in an exceedingly structured and acceptable market will do the particular return are
totally different than expected return. The return is loss in a while, someday adequate to
original investment.
 Salman (2003) Provides tried and true information to support the positive and linear
relationship between risk and return. whereas learning the big city exchange, he finds that
the CAPM’s conception is valid and he believes that each risk and come are integrated
within the data provided to the market. Similarly, a positive and important association
between risk and return within the Jordanian stock exchange.
 Sangeetha and Dheeraj (2008) studied the risk return relation utilizing market &
accounting primarily based info and located that risk computed on the premise of
accounting info wasn't considerably captured by the market however monetary risk had
important influence.
 Hasan Ali and Habibolah (2011)

The research has been conducted to analyze the relationship of risk and return of 70 firms
listed on Iran stock exchange from the period 2002 to 2004. The study analyses the
characteristics of the return in terms of lopsidedness & Kurtosis to find out the distribution
of series as the study considers that Kurtosis does not show any relation with the return in
the entire analysis and whereas lopsidedness showed the vital effects on returns.
 Dr. Pramod Kumar Patjoshi 2015- The study on risk and return tries to identify the
correlation between the BSE and 30 companies of banking sector based on the 15 years of
data from 2001, Jan to 2015, Dec and tested the presence or absence of the risk return
tradeoff between the Indian equity markets and hypothesis testing of that information has
been done to calculate the beta of four banking stocks with the BSE sensex with the
relevance sensex.
 Madhu and Tamimi (2011) in their study disclose that CAPM command smart in Indian
stock exchange in explaining the systematic risk and establishing the trade-off b/w risk and
return. So as to determine the positive risk-return relationship between equity returns &
totally different sharing and monetary risk variables.
From the study it was understood that the systematic risk was high in small corporations
when compared to the big corporations due to difference in beta and also because of
inconsistency in the market.
 Shijin and others (2008) in this study the author has done an analysis on risk & return of
traditional stocks of 72 firms listed on BSE from the period 1995 to 2005 March, using
Vector Autoregressive Model, which has resulted that market risk alternative had a
deliberate impact on returns in Indian market.
 Koo and Olson (2008)

The research on risk & return of 299 companies listed on New York Stock Exchange was
conducted using CAPM model. The study was based on S&P 500 index 500 index as a
representative of market portfolio and resulted that this market model of beta was not
significant in calculating the market risk and thereby the expected return derived by method
of incorporate with the market model of beta was no longer related to New York stock
market.
 Ahmed (2008)
In his investigation to recognize the connection between the financial variables and made
an undertaking in his investigation to chase out the r connection between stock cost and
differed monetary factors on the idea of supposition of the financial factors are regularly
the clarification behind determinative cost of the security with association Indian economy.
data were gathered covering twelve years on the idea of quarterly information. The
investigation utilized Indian Industrial Production, trades, remote direct venture, trade out
hand and as an intermediary for financial factors and Sensex was taken for the intermediary
of market return.
 Vanitha (2008) inspected the connection between certain organization fundamental factors
and additionally the market estimation of the security. The examination known size, use,
esteem income proportion and book to advance value proportion and furthermore the
known factors were then relapsed with the arrival of the scrips gathered from 455 firms
recorded in BSE with the traverse of 10-year term result demonstrated that the scale and
esteem profit greatness connection had positive effect while obligation value size
connection and book to advance value extent connection had negative effect on scrip's
arrival in Indian setting.
 Rajagopala Nair and Elsamma Joseph(2001) found the fluctuated dangers educated by
financial specialists in organization securities and additionally the measures embraced for
declining dangers. They opined that computed hazard may delaine the power of loss of
fund in organization securities. According to their examination, a few financial specialists
are holding offers of these organizations that are non-existent these days. They opined that
speculators may make due with dangers intrinsic in value, anyway they won't compromise
to the danger of extortion. Promoters shouldn't be permitted to plunder the specific
financial specialists by their untrustworthy demonstrations.
 Suresh G Lalwani (1999) directed the need for chance administration inside money
markets with particular weight on the esteem chance. He remarked that the stock exchange
could be an unsafe and there's finished a decent likelihood that reserved from up, genuine
may slip.
 Robert Gay (2009) examined the connection between the monetary science variable and
along these lines the securities advertise return. The examination broke down with
reference to four rising firms like Brazil, Russia, China and India by approach of particular
the interceding factors. The investigation utilized ARIMA model to look out the impact of
interceding factors on securities advertise return and extra the examination ended that there
was no imperative connection between the mediating factors and along these lines the
securities showcase return.
CHAPTER 3
RESEARCH DESIGN
STATEMENT OF THE PROBLEM

In the current economic situation interest rates are reducing and fluctuation within the share
market has put investors in confusion. One finds it tough to require call on investment. This can
be primarily, as a result of investments are risky in nature and investors have to be compelled to
contemplate varied factors before investment in investment avenues. Therefore, the study aims
equity within the kind their risk, return and making awareness regarding equity among the
investors.
NEED FOR THE STUDY

The project conducted for the Geojit Financial Services Limited, is basically carried out to study
the analysis of investors risk and return of equity shares. The need of the study is to guide the
investors and also to understand the volatility of the market before investment.
OBJECTIVES OF THE STUDY

objective of the study is to yield data to single investors relating to their risk, the simplest
investment options to match there was an perspective to risk.
1.To know the risk and return in list 0f five IT sector firms.
2.To analyze the performance of equity shares relying upon the market.
3.To find the variation of shares by utilizing beta.
4.To deliver data regarding pros and cons of investment in equity.
SCOPE OF THE STUDY

One of the most important functions of the market index is to show, in which direction the set of
scripts are heading toward. The market index as a benchmark against which, the investors evaluate
the risk and return of their institutional portfolio. Market indicator is one of the economic
indicators, if the index is heading upwards, it shows the economy is in a boom, investors
purchasing power is high, and market is bullish if the index is heading toward, it signifies slack
period in the economy comma in this period investors are bearish full stop. If the historical
projected it shows future Trends, by the help of this investors can forecast and tell decisions
accordingly to buy or sell or to hold their securities this research seeks to if ticket and
constructively contribute to help.
 The investors understand the risk and return of selected securities in comparison with
market index
 It also helps the investor to understand the working half market index and their related
concepts
RESEARCH METHODOLOGY
In order to satisfy the target of the study, the information collected from each the first and
secondary sources.
• Primary information
• Secondary information
Primary Data:
The information collected initial hand by the investigator involved with the analysis drawback
refers to the first data.
Personal discussion was created with unit manager and interaction with alternative personnel
within the organization for this purpose. This can be no formal style of form employed in this
study.
Methods of primary information includes;
 Questionnaires
 Interviews
 Observation
Secondary Data:
The information offered at varied sources created for a few alternative purpose
but facilitating the study undertaken is termed as Secondary information.
The various sources that were used for the gathering of secondary knowledge are
• Various text books were accustomed perceive the concepts of risk and return.
• Websites of the corporate.
• Newspapers similar to Economic times, merchandise.
• Magazines similar to Business world, capital market.
We adopted descriptive research methodology. We explain the risk, return and beta.
The following measures are used to analyzing data analysis
 Calculation of expected return
 Analysis of expected risk
 Calculation of beta
 Calculation of alpha
 CAPM Model
HYPOTHESES
H0: There is no negative relationship between Return and Risk.

H1: There is a negative relationship between Return and Risk.
LIMITATIONS
• The period of time of the project was restricted to only 2.5 month
• The data provided is restricted to the extent and net and journals.
• The analysis is strictly supported share value data.
• Other company performance indicators aren't thought-about.
• It focuses in each month ending closing costs of throughout the amount from first Apr 2007
to thirty first march2018.
• The calculation is simply for IT sectors
CHAPTER SCHEEM
CHAPTER 1: Introduction
The report on the study has been presented in a format consist different chapters. The chapter
one gives information about introduction to the internship and about the title of the project. And
continue with industry profile and company profile, promoters details, vision, mission, quality
policy and product and services offered by the organization and area which they are operating
and infrastructure details. It also gives information regarding competitors, what are their
Strengths, weakness, opportunities and threats. It describes what are its future growth and
financial disclosure.
CHAPTER 2: Conceptual Background and Literature Review
In the chapter second provide the information about the theoretical background of the study of
the organization and literature review of authors regarding the topic is Analysis of investors risk
and return on equity shares.
CHAPTER 3: Research Design
The chapter three explains the topic Analysis of investors risk and return on equity shares is the
statement of the problem, need of the study, objectives, scope, research methodology, research
design, hypotheses, and limitations. The hypotheses tool used for calculation is correlation.
CHAPTER-4 Data Analysis and Interpretation
The fourth chapter contains details regarding Data Analysis and required interpretation. In this
chapter Rate of return, Risk, Alpha, Beta, CAPM and correlation
CHAPTER-5 Findings, Suggestions and Conclusion
The fifth chapter contains the findings, suggestions and conclusion about the about the subject, its
objectives, values estimated and graph.
CHAPTER 4: ANALYSIS AND INTERPRETATION
The following formulas are used to calculate the risk and return:
Return
Return = (P1-P0)/P0*100
Where,
P1 =Current month price
P0 = Previous month price
R1=∑R/n
n = Number of months.
Risk
Risk = √∑(R-R1)2/n
Beta
Beta = [∑(Ra-Ra1)(Rm-Rm1)]/∑(Rm-Rm1)2
Where,
Ra = Return on company
Ra1=Average return on company
Rm=Return on market
Rm1=Average return on market
Alpha =(Ra1-Rm1) *B
CALCULATION OF RETURN AND RISK OF SELECTED COMPANIES
1. Table Showing Calculation of Return and Risk of Bench Mark (BSE SENSEX)
Month Sensex R% (R-R1) (R-R1)2

Apr-13 5709.64
May-13 6065.34 6.230 4.953 24.53037
Jun-13 6255.1 3.129 1.852 3.428409
Jul-13 7458.19 19.234 17.957 322.4447
Aug-13 8027.55 7.634 6.357 40.41175
Sep-13 7839.26 -2.346 -3.623 13.12285
Oct-13 8477.73 8.145 6.868 47.16281
Nov-13 8414.25 -0.749 -2.026 4.103806
Dec-13 9081.78 7.933 6.656 44.30669
Jan-14 9476.62 4.348 3.071 9.42862
Feb-14 9792.25 3.331 2.054 4.217346
Mar-14 8789.38 -10.241 -11.518 132.6751
Apr-14 8751.78 -0.428 -1.705 2.906306
May-14 8455.36 -3.387 -4.664 21.7526
Jun-14 9346.1 10.535 9.258 85.70352
Jul-14 9742.34 4.240 2.963 8.777173
Aug-14 10085.87 3.526 2.249 5.058698
Sep-14 10687.59 5.966 4.689 21.98644
Oct-14 10701.99 0.135 -1.142 1.304768
Nov-14 11207.45 4.723 3.446 11.87524
Dec-14 10583.98 -5.563 -6.840 46.78555
Jan-15 11178.71 5.619 4.342 18.85429
Feb-15 11969.48 7.074 5.797 33.60397
Mar-15 11404.12 -4.723 -6.000 36.00416
Apr-15 10410.98 -8.709 -9.986 99.71235
May-15 10910.45 4.798 3.521 12.39414
Jun-15 10449.45 -4.225 -5.502 30.27538
Jul-15 11072.67 5.964 4.687 21.9693
Aug-15 11161.34 0.801 -0.476 0.226766
Sep-15 11577.86 3.732 2.455 6.026092
Oct-15 11263.78 -2.713 -3.990 15.91822
Nov-15 10950.02 -2.786 -4.063 16.50444
Dec-15 11061.31 1.016 -0.261 0.067941
Jan-16 11165.05 0.938 -0.339 0.115013
Feb-16 10229.49 -8.379 -9.656 93.24533
Mar-16 11387.95 11.325 10.048 100.9565
Apr-16 11330.17 -0.507 -1.784 3.184006
May-16 11576.14 2.171 0.894 0.79911
Jun-16 11199.95 -3.250 -4.527 20.49103
Jul-16 10813.2 -3.453 -4.730 22.37423
Aug-16 10439.35 -3.457 -4.734 22.41406
Sep-16 10229.09 -2.014 -3.291 10.83141
Oct-16 10032.72 -1.920 -3.197 10.21903
Nov-16 9851.55 -1.806 -3.083 9.503603
Dec-16 10176.05 3.294 2.017 4.067877
Jan-17 9586.34 -5.795 -7.072 50.01428
Feb-17 10376.1 8.238 6.961 48.46094
Mar-17 10365.51 -0.102 -1.379 1.901811
Apr-17 9618.99 -7.202 -8.479 71.89278
May-17 10229.52 6.347 5.070 25.70624
Jun-17 9833.46 -3.872 -5.149 26.50948
Jul-17 10437.79 6.146 4.869 23.70375
Aug-17 10063.83 -3.583 -4.860 23.61718
Sep-17 9946.6 -1.165 -2.442 5.962703
Oct-17 10362.22 4.179 2.902 8.418779
Nov-17 10730.87 3.558 2.281 5.201298
Dec-17 11277.81 5.097 3.820 14.59151
Jan-18 12556.98 11.342 10.065 101.3115
Feb-18 12505.73 -0.408 -1.685 2.839695
Mar-18 12100.55 -3.240 -4.517 20.40288
75.363 1844.317
Calculation of Return:
Return = (P1-P0)/P0*100
Where,
R1=∑R/n
R1=75.363/59
=1.277
Calculation of Risk:
Risk = √∑(R-R1)2/n
=√∑1844.317/59
=5.59
Sensex
14000
12000
10000
8000
6000
4000
2000
0
Jul-13
Jul-14
Jul-15
Jul-16
Jul-17
Apr-13
Apr-14
Apr-15
Apr-16
Apr-17
Jan-18
Jan-14
Jan-15
Jan-16
Jan-17
Oct-14
Oct-13
Oct-15
Oct-16
Oct-17
Interpretation:
In the opening month of April 2013 the Sensex rate was 5,709.64 and that have been increased to
8,789.38 in the month of March 2014 which refers there is an increase in the Sensex rate by
3,079.74.
In the opening month of April 2014 the Sensex rate was 8,751.78 and that have been increased to
11404.12 in the month of March 2015 which refers there is an increase in the Sensex rate by
2652.34.
In the opening month of April 2015 the Sensex rate was 10,410.98 and that have been increased
to 11,387.95 in the month of March 2016 which refers there is an increase in the Sensex rate by
976.97.
In the opening month of April 2016 the Sensex rate was 11,330.17 and that have been decreased
to 10,365.51 in the month of March 2017 which refers there is a drastic change in the Sensex rate
that is been decreased by 976.97.
In the opening month of April 2017 the Sensex rate was 9618.99 and that have been increased to
12100 in the month of March 2018 which refers there is an increase in the Sensex rate by
2,481.56.
Here there is an average profit 1.277% every month.
The Risk of BSE Sensex is 5.59.
2.a) TABLE SHOWING CALCULATION OF RETURN AND RISK OF WIPRO
Date Price R% R-R1 (R-R1)2

Apr-13 173.95
May-13 163.28 -6.13395 -7.17005 51.40957
Jun-13 174.9 7.11661 6.08051 36.9726
Jul-13 218.65 25.01429 23.97819 574.9538
Aug-13 241.95 10.656 9.620 92.54825
Sep-13 237.03 -2.033 -3.070 9.422309
Oct-13 238.47 0.608 -0.429 0.183683
Nov-13 235.47 -1.258 -2.294 5.262986
Dec-13 279.52 18.707 17.671 312.2701
Jan-14 287.48 2.848 1.812 3.282036
Feb-14 298.38 3.792 2.755 7.592605
Mar-14 271.3 -9.076 -10.112 102.248
Apr-14 261 -3.797 -4.833 23.35436
May-14 252.5 -3.257 -4.293 18.42817
Jun-14 272.48 7.913 6.877 47.28998
Jul-14 271.82 -0.242 -1.278 1.634101
Aug-14 282.7 4.003 2.967 8.800412
Sep-14 298.18 5.476 4.440 19.71066
Oct-14 281.73 -5.517 -6.553 42.94052
Nov-14 292.75 3.912 2.875 8.268193
Dec-14 276.9 -5.414 -6.450 41.60606
Jan-15 303.15 9.480 8.444 71.29872
Feb-15 329.62 8.732 7.696 59.22151
Mar-15 313.9 -4.769 -5.805 33.70067
Apr-15 269.27 -14.218 -15.254 232.6846
May-15 280.8 4.282 3.246 10.53553
Jun-15 272.07 -3.109 -4.145 17.18164
Jul-15 284.57 4.594 3.558 12.66154
Aug-15 285.73 0.408 -0.628 0.394971
Sep-15 298.57 4.494 3.458 11.95536
Oct-15 286.65 -3.992 -5.028 25.28545
Nov-15 286.35 -0.105 -1.141 1.301327
Dec-15 279.9 -2.252 -3.289 10.81481
Jan-16 280.6 0.250 -0.786 0.617813
Feb-16 259.95 -7.359 -8.395 70.48157
Mar-16 281.68 8.359 7.323 53.62926
Apr-16 276.85 -1.715 -2.751 7.566965
May-16 273.1 -1.355 -2.391 5.715084
Jun-16 279.18 2.226 1.190 1.416554
Jul-16 272.65 -2.339 -3.375 11.39125
Aug-16 245.25 -10.050 -11.086 122.8908
Sep-16 238.82 -2.622 -3.658 13.38034
Oct-16 232.5 -2.646 -3.682 13.5604
Nov-16 232.55 0.022 -1.015 1.029402
Dec-16 237 1.914 0.877 0.769948
Jan-17 228.55 -3.565 -4.602 21.17381
Feb-17 244.25 6.869 5.833 34.02732
Mar-17 257.68 5.498 4.462 19.9127
Apr-17 247.05 -4.125 -5.161 26.63976
May-17 268.57 8.711 7.675 58.90082
Jun-17 258.75 -3.656 -4.693 22.01958
Jul-17 289 11.691 10.655 113.5231
Aug-17 299.05 3.478 2.441 5.960476
Sep-17 280.95 -6.052 -7.089 50.24824
Oct-17 294 4.645 3.609 13.02383
Nov-17 291.8 -0.748 -1.784 3.184081
Dec-17 313.4 7.402 6.366 40.52889
Jan-18 304.65 -2.792 -3.828 14.65404
Feb-18 292.8 -3.890 -4.926 24.2636
Mar-18 281.45 -3.876 -4.912 24.13232
61.134 2669.857
Calculation of Return = (P1-P0)/P0*100

Where,
R1=∑R/n
R1=61.134/59
=1.036
Calculation of Risk
SD = √∑(R-R1)2/n
SD =√∑2669.857/59
=6.727
WIPRO
350
300
250
200
150
100
50
0
Jul-13
Jul-14
Jul-15
Jul-16
Jul-17
Apr-13
Apr-14
Apr-15
Jan-16
Apr-16
Apr-17
Jan-14
Jan-15
Jan-17
Jan-18
Oct-13
Oct-14
Oct-15
Oct-16
Oct-17
Analysis and Interpretation:

In the above table and graph we can understand the one percent change in market return causes -
1.036 changes in the stock return with beta of 0.939 is less impulsive in the market. There is a
positive correlation 0.787 between the BSE Sensex and stock. The stock price moves in the same
direction with the BSE index rate.
2.b) TABLE SHOWING CALCULATION OF WIPRO BETA
Rm- (Rm- (Ra-Ra1)(Rm-

Date Ra Rm Ra-Ra1 Rm1 Rm1)2 Rm1)
Apr-13
May-13 -6.13395 6.23 -7.17005 4.953 24.532 -35.513
Jun-13 7.11661 3.129 6.08051 1.852 3.430 11.261
Jul-13 25.01429 19.234 23.97819 17.957 322.454 430.576
Aug-13 10.656 7.634 9.6199 6.357 40.411 61.154
Sep-13 -2.033 -2.346 -3.0691 -3.623 13.126 11.119
Oct-13 0.608 8.145 -0.4281 6.868 47.169 -2.940
Nov-13 -1.258 -0.749 -2.2941 -2.026 4.105 4.648
Dec-13 18.707 7.933 17.6709 6.656 44.302 117.618
Jan-14 2.848 4.348 1.8119 3.071 9.431 5.564
Feb-14 3.792 3.331 2.7559 2.054 4.219 5.661
Mar-14 -9.076 -10.241 -10.1121 -11.518 132.664 116.471
Apr-14 -3.797 -0.428 -4.8331 -1.705 2.907 8.240
May-14 -3.257 -3.387 -4.2931 -4.664 21.753 20.023
Jun-14 7.913 10.535 6.8769 9.258 85.711 63.666
Jul-14 -0.242 4.24 -1.2781 2.963 8.779 -3.787
Aug-14 4.003 3.526 2.9669 2.249 5.058 6.673
Sep-14 5.476 5.966 4.4399 4.689 21.987 20.819
Oct-14 -5.517 0.135 -6.5531 -1.142 1.304 7.484
Nov-14 3.912 4.723 2.8759 3.446 11.875 9.910
Dec-14 -5.414 -5.563 -6.4501 -6.84 46.786 44.119
Jan-15 9.48 5.619 8.4439 4.342 18.853 36.663
Feb-15 8.732 7.074 7.6959 5.797 33.605 44.613
Mar-15 -4.769 -4.723 -5.8051 -6 36.000 34.831
Apr-15 -14.218 -8.709 -15.2541 -9.986 99.720 152.327
May-15 4.282 4.798 3.2459 3.521 12.397 11.429
Jun-15 -3.109 -4.225 -4.1451 -5.502 30.272 22.806
Jul-15 4.594 5.964 3.5579 4.687 21.968 16.676
Aug-15 0.408 0.801 -0.6281 -0.476 0.227 0.299
Sep-15 4.494 3.732 3.4579 2.455 6.027 8.489
Oct-15 -3.992 -2.713 -5.0281 -3.99 15.920 20.062
Nov-15 -0.105 -2.786 -1.1411 -4.063 16.508 4.636
Dec-15 -2.252 1.016 -3.2881 -0.261 0.068 0.858
Jan-16 0.25 0.938 -0.7861 -0.339 0.115 0.266
Feb-16 -7.359 -8.379 -8.3951 -9.656 93.238 81.063
Mar-16 8.359 11.325 7.3229 10.048 100.962 73.580
Apr-16 -1.715 -0.507 -2.7511 -1.784 3.183 4.908
May-16 -1.355 2.171 -2.3911 0.894 0.799 -2.138
Jun-16 2.226 -3.25 1.1899 -4.527 20.494 -5.387
Jul-16 -2.339 -3.453 -3.3751 -4.73 22.373 15.964
Aug-16 -10.05 -3.457 -11.0861 -4.734 22.411 52.482
Sep-16 -2.622 -2.014 -3.6581 -3.291 10.831 12.039
Oct-16 -2.646 -1.92 -3.6821 -3.197 10.221 11.772
Nov-16 0.022 -1.806 -1.0141 -3.083 9.505 3.126
Dec-16 1.914 3.294 0.8779 2.017 4.068 1.771
Jan-17 -3.565 -5.795 -4.6011 -7.072 50.013 32.539
Feb-17 6.869 8.238 5.8329 6.961 48.456 40.603
Mar-17 5.498 -0.102 4.4619 -1.379 1.902 -6.153
Apr-17 -4.125 -7.202 -5.1611 -8.479 71.893 43.761
May-17 8.711 6.347 7.6749 5.07 25.705 38.912
Jun-17 -3.656 -3.872 -4.6921 -5.149 26.512 24.160
Jul-17 11.691 6.146 10.6549 4.869 23.707 51.879
Aug-17 3.478 -3.583 2.4419 -4.86 23.620 -11.868
Sep-17 -6.052 -1.165 -7.0881 -2.442 5.963 17.309
Oct-17 4.645 4.179 3.6089 2.902 8.422 10.473
Nov-17 -0.748 3.558 -1.7841 2.281 5.203 -4.070
Dec-17 7.402 5.097 6.3659 3.82 14.592 24.318
Jan-18 -2.792 11.342 -3.8281 10.065 101.304 -38.530
Feb-18 -3.89 -0.408 -4.9261 -1.685 2.839 8.300
Mar-18 -3.876 -3.24 -4.9121 -4.517 20.403 22.188
1872.303 1759.724
Beta = [∑(Ra-Ra1) (Rm-Rm1)]/∑(Rm-Rm1)2

Where,
Rm=Return on market
Beta=1759.724/1872.303
=0.939
Alpha =(Ra1-Rm1) *B
= (1.036-1.277) *0.939
=-0.226
3.a) TABLE SHOWING CALCULATION OF RETURN AND RISK OFINFOSYS
Apr-13 558.61
May-13 601.9 7.750 6.314 39.861
Jun-13 623.31 3.557 2.121 4.499
Jul-13 741.79 19.008 17.572 308.782
Aug-13 775.08 4.488 3.052 9.313
Sep-13 753.86 -2.738 -4.174 17.420
Oct-13 827.16 9.723 8.287 68.679
Nov-13 838.38 1.356 -0.080 0.006
Dec-13 871.38 3.936 2.500 6.251
Jan-14 924.86 6.137 4.701 22.103
Feb-14 955.05 3.264 1.828 3.343
Mar-14 819.71 -14.171 -15.607 243.578
Apr-14 794.3 -3.100 -4.536 20.574
May-14 735.38 -7.418 -8.854 78.391
Jun-14 811.61 10.366 8.930 79.746
Jul-14 841.42 3.673 2.237 5.004
Aug-14 898.5 6.784 5.348 28.599
Sep-14 936.91 4.275 2.839 8.059
Oct-14 1,012.86 8.106 6.670 44.495
Nov-14 1,089.81 7.597 6.161 37.962
Dec-14 985.6 -9.562 -10.998 120.961
Jan-15 1,071.38 8.703 7.267 52.814
Feb-15 1,147.42 7.097 5.661 32.051
Mar-15 1,108.30 -3.409 -4.845 23.478
Apr-15 971.2 -12.370 -13.806 190.614
May-15 1,011.20 4.119 2.683 7.196
Jun-15 985.35 -2.556 -3.992 15.939
Jul-15 1,078.05 9.408 7.972 63.550
Aug-15 1,095.20 1.591 0.155 0.024
Sep-15 1,160.45 5.958 4.522 20.447
Oct-15 1,136.05 -2.103 -3.539 12.522
Nov-15 1,088.45 -4.190 -5.626 31.651
Dec-15 1,104.55 1.479 0.043 0.002
Jan-16 1,164.85 5.459 4.023 16.186
Feb-16 1,083.75 -6.962 -8.398 70.531
Mar-16 1,217.95 12.383 10.947 119.835
Apr-16 1,210.85 -0.583 -2.019 4.076
May-16 1,249.85 3.221 1.785 3.186
Jun-16 1,170.75 -6.329 -7.765 60.291
Jul-16 1,073.95 -8.268 -9.704 94.172
Aug-16 1,036.80 -3.459 -4.895 23.963
Sep-16 1,038.10 0.125 -1.311 1.718
Oct-16 1,002.50 -3.429 -4.865 23.672
Nov-16 975.45 -2.698 -4.134 17.092
Dec-16 1,010.70 3.614 2.178 4.742
Jan-17 929.3 -8.054 -9.490 90.057
Feb-17 1,012.30 8.931 7.495 56.182
Mar-17 1,020.80 0.840 -0.596 0.356
Apr-17 919.4 -9.933 -11.369 129.263
May-17 976.95 6.260 4.824 23.266
Jun-17 935.65 -4.227 -5.663 32.075
Jul-17 1,011.30 8.085 6.649 44.213
Aug-17 915.3 -9.493 -10.929 119.437
Sep-17 898.75 -1.808 -3.244 10.525
Oct-17 921.65 2.548 1.112 1.237
Nov-17 974.95 5.783 4.347 18.897
Dec-17 1,039.30 6.600 5.164 26.670
Jan-18 1,150.65 10.714 9.278 86.080
Feb-18 1,174.25 2.051 0.615 0.378
Mar-18 1,134.40 -3.394 -4.830 23.326
84.736 2699.340
Return= (P1-P0)/P0*100
Where,
R1=∑R/n
R1=84.736 /59
=1.436
Calculation of Risk
SD = √∑(R-R1)2/n
SD =√∑2699.340/59
=6.764
INFOSYS
1400
1200
1000
800
600
400
200
0
Jul-13
Jul-14
Jul-15
Jul-16
Jul-17
Apr-13
Apr-14
Apr-15
Apr-16
Apr-17
Jan-16
Jan-14
Jan-15
Jan-17
Jan-18
Oct-13
Oct-14
Oct-15
Oct-16
Oct-17
6
In the above table and graph we can understand the one percent change in market return causes
positive correlation 0.936 between the BSE Sensex and stock. The stock price move in the same
3.b)TABLE SHOWING CALCULATION OF INFOSYS BETA
(Ra-Ra1)(Rm-
Date R% Rm Ra-Ra1 Rm-Rm1 (Rm-Rm1)2 Rm1)
Apr-13
May-13 7.75 6.23 6.314 4.953 24.532 31.273
Jun-13 3.557 3.129 2.121 1.852 3.43 3.928
Jul-13 19.008 19.234 17.572 17.957 322.454 315.540
Aug-13 4.488 7.634 3.052 6.357 40.411 19.402
Sep-13 -2.738 -2.346 -4.174 -3.623 13.126 15.122
Oct-13 9.723 8.145 8.287 6.868 47.169 56.915
Nov-13 1.356 -0.749 -0.08 -2.026 4.105 0.162
Dec-13 3.936 7.933 2.5 6.656 44.302 16.640
Jan-14 6.137 4.348 4.701 3.071 9.431 14.437
Feb-14 3.264 3.331 1.828 2.054 4.219 3.755
Mar-14 -14.171 -10.241 -15.607 -11.518 132.664 179.761
Apr-14 -3.1 -0.428 -4.536 -1.705 2.907 7.734
May-14 -7.418 -3.387 -8.854 -4.664 21.753 41.295
Jun-14 10.366 10.535 8.93 9.258 85.711 82.674
Jul-14 3.673 4.24 2.237 2.963 8.779 6.628
Aug-14 6.784 3.526 5.348 2.249 5.058 12.028
Sep-14 4.275 5.966 2.839 4.689 21.987 13.312
Oct-14 8.106 0.135 6.67 -1.142 1.304 -7.617
Nov-14 7.597 4.723 6.161 3.446 11.875 21.231
Dec-14 -9.562 -5.563 -10.998 -6.84 46.786 75.226
Jan-15 8.703 5.619 7.267 4.342 18.853 31.553
Feb-15 7.097 7.074 5.661 5.797 33.605 32.817
Mar-15 -3.409 -4.723 -4.845 -6 36 29.070
Apr-15 -12.37 -8.709 -13.806 -9.986 99.72 137.867
May-15 4.119 4.798 2.683 3.521 12.397 9.447
Jun-15 -2.556 -4.225 -3.992 -5.502 30.272 21.964
Jul-15 9.408 5.964 7.972 4.687 21.968 37.365
Aug-15 1.591 0.801 0.155 -0.476 0.227 -0.074
Sep-15 5.958 3.732 4.522 2.455 6.027 11.102
Oct-15 -2.103 -2.713 -3.539 -3.99 15.92 14.121
Nov-15 -4.19 -2.786 -5.626 -4.063 16.508 22.858
Dec-15 1.479 1.016 0.043 -0.261 0.068 -0.011
Jan-16 5.459 0.938 4.023 -0.339 0.115 -1.364
Feb-16 -6.962 -8.379 -8.398 -9.656 93.238 81.091
Mar-16 12.383 11.325 10.947 10.048 100.962 109.995
Apr-16 -0.583 -0.507 -2.019 -1.784 3.183 3.602
May-16 3.221 2.171 1.785 0.894 0.799 1.596
Jun-16 -6.329 -3.25 -7.765 -4.527 20.494 35.152
Jul-16 -8.268 -3.453 -9.704 -4.73 22.373 45.900
Aug-16 -3.459 -3.457 -4.895 -4.734 22.411 23.173
Sep-16 0.125 -2.014 -1.311 -3.291 10.831 4.315
Oct-16 -3.429 -1.92 -4.865 -3.197 10.221 15.553
Nov-16 -2.698 -1.806 -4.134 -3.083 9.505 12.745
Dec-16 3.614 3.294 2.178 2.017 4.068 4.393
Jan-17 -8.054 -5.795 -9.49 -7.072 50.013 67.113
Feb-17 8.931 8.238 7.495 6.961 48.456 52.173
Mar-17 0.84 -0.102 -0.596 -1.379 1.902 0.822
Apr-17 -9.933 -7.202 -11.369 -8.479 71.893 96.398
May-17 6.26 6.347 4.824 5.07 25.705 24.458
Jun-17 -4.227 -3.872 -5.663 -5.149 26.512 29.159
Jul-17 8.085 6.146 6.649 4.869 23.707 32.374
Aug-17 -9.493 -3.583 -10.929 -4.86 23.62 53.115
Sep-17 -1.808 -1.165 -3.244 -2.442 5.963 7.922
Oct-17 2.548 4.179 1.112 2.902 8.422 3.227
Nov-17 5.783 3.558 4.347 2.281 5.203 9.916
Dec-17 6.6 5.097 5.164 3.82 14.592 19.726
Jan-18 10.714 11.342 9.278 10.065 101.304 93.383
Feb-18 2.051 -0.408 0.615 -1.685 2.839 -1.036
Mar-18 -3.394 -3.24 -4.83 -4.517 20.403 21.817
84.736 75.363 1872.302 2104.242

Where,
Rm=Return on market
Beta=2104.242/1872.302
=1.124
Alpha =(Ra1-Rm1) *B
= (1.436-1.277) *1.124
=-0.179
4.a) TABLE SHOWING CALCULATION OF RETURN AND RISK OFTCS

Apr-13 1,355.12
May-13 1,476.57 8.962 7.497 56.210
Jun-13 1,495.08 1.254 -0.211 0.045
Jul-13 1,787.23 19.541 18.076 326.733
Aug-13 1,992.08 11.462 9.997 99.937
Sep-13 1,897.12 -4.767 -6.232 38.836
Oct-13 2,075.88 9.423 7.958 63.325
Nov-13 1,973.82 -4.916 -6.381 40.723
Dec-13 2,137.62 8.299 6.834 46.698
Jan-14 2,201.86 3.005 1.540 2.372
Feb-14 2,237.90 1.637 0.172 0.030
Mar-14 2,095.57 -6.360 -7.825 61.230
Apr-14 2,155.78 2.873 1.408 1.983
May-14 2,111.28 -2.064 -3.529 12.455
Jun-14 2,382.30 12.837 11.372 129.317
Jul-14 2,577.30 8.185 6.720 45.163
Aug-14 2,524.60 -2.045 -3.510 12.319
Sep-14 2,738.20 8.461 6.996 48.940
Oct-14 2,604.55 -4.881 -6.346 40.271
Nov-14 2,643.10 1.480 0.015 0.000
Dec-14 2,554.70 -3.345 -4.810 23.132
Jan-15 2,481.00 -2.885 -4.350 18.921
Feb-15 2,675.30 7.832 6.367 40.533
Mar-15 2,547.05 -4.794 -6.259 39.173
Apr-15 2,466.65 -3.157 -4.622 21.359
May-15 2,610.60 5.836 4.371 19.104
Jun-15 2,552.20 -2.237 -3.702 13.705
Jul-15 2,510.00 -1.653 -3.118 9.725
Aug-15 2,565.25 2.201 0.736 0.542
Sep-15 2,587.70 0.875 -0.590 0.348
Oct-15 2,497.30 -3.493 -4.958 24.586
Nov-15 2,365.25 -5.288 -6.753 45.599
Dec-15 2,439.20 3.127 1.662 2.761
Jan-16 2,391.20 -1.968 -3.433 11.785
Feb-16 2,181.90 -8.753 -10.218 104.406
Mar-16 2,516.05 15.315 13.850 191.812
Apr-16 2,530.05 0.556 -0.909 0.826
May-16 2,575.10 1.781 0.316 0.100
Jun-16 2,550.80 -0.944 -2.409 5.802
Jul-16 2,618.55 2.656 1.191 1.419
Aug-16 2,512.55 -4.048 -5.513 30.394
Sep-16 2,427.20 -3.397 -4.862 23.639
Oct-16 2,394.60 -1.343 -2.808 7.885
Nov-16 2,276.75 -4.921 -6.386 40.787
Dec-16 2,361.95 3.742 2.277 5.186
Jan-17 2,229.90 -5.591 -7.056 49.783
Feb-17 2,466.50 10.610 9.145 83.637
Mar-17 2,431.10 -1.435 -2.900 8.411
Apr-17 2,272.10 -6.540 -8.005 64.084
May-17 2,544.35 11.982 10.517 110.614
Jun-17 2,364.35 -7.074 -8.539 72.923
Jul-17 2,494.05 5.486 4.021 16.166
Aug-17 2,496.75 0.108 -1.357 1.841
Sep-17 2,437.00 -2.393 -3.858 14.885
Oct-17 2,616.30 7.357 5.892 34.720
Nov-17 2,634.25 0.686 -0.779 0.607
Dec-17 2,700.40 2.511 1.046 1.094
Jan-18 3,111.75 15.233 13.768 189.556
Feb-18 3,038.25 -2.362 -3.827 14.646
Mar-18 2,849.30 -6.219 -7.684 59.044
86.439 2432.128
Where,
R1=∑R/n
R1=86.439 /59
=1.46
Calculation of Risk
SD = √∑(R-R1)2/n
SD =√∑2432.128/59
=6.42
TCS
3,500.00
3,000.00
2,500.00
2,000.00
1,500.00
1,000.00
500.00
0.00
Jul-13
Jul-14
Jul-15
Jul-16
Jul-17
Apr-13
Apr-14
Apr-15
Apr-16
Apr-17
Jan-14
Jan-15
Jan-16
Jan-17
Jan-18
Oct-13
Oct-14
Oct-15
Oct-16
Oct-17
In the above table and graph we can understand the one percent change in market return causes -
4.b)TABLE SHOWING CALCULATION OF TCS BETA

Apr-13
May-13 8.962 6.23 7.497 4.953 24.532 37.133
Jun-13 1.254 3.129 -0.211 1.852 3.43 -0.391
Jul-13 19.541 19.234 18.076 17.957 322.454 324.591
Aug-13 11.462 7.634 9.997 6.357 40.411 63.551
Sep-13 -4.767 -2.346 -6.232 -3.623 13.126 22.579
Oct-13 9.423 8.145 7.958 6.868 47.169 54.656
Nov-13 -4.916 -0.749 -6.381 -2.026 4.105 12.928
Dec-13 8.299 7.933 6.834 6.656 44.302 45.487
Jan-14 3.005 4.348 1.54 3.071 9.431 4.729
Feb-14 1.637 3.331 0.172 2.054 4.219 0.353
Mar-14 -6.36 -10.241 -7.825 -11.518 132.664 90.128
Apr-14 2.873 -0.428 1.408 -1.705 2.907 -2.401
May-14 -2.064 -3.387 -3.529 -4.664 21.753 16.459
Jun-14 12.837 10.535 11.372 9.258 85.711 105.282
Jul-14 8.185 4.24 6.72 2.963 8.779 19.911
Aug-14 -2.045 3.526 -3.51 2.249 5.058 -7.894
Sep-14 8.461 5.966 6.996 4.689 21.987 32.804
Oct-14 -4.881 0.135 -6.346 -1.142 1.304 7.247
Nov-14 1.48 4.723 0.015 3.446 11.875 0.052
Dec-14 -3.345 -5.563 -4.81 -6.84 46.786 32.900
Jan-15 -2.885 5.619 -4.35 4.342 18.853 -18.888
Feb-15 7.832 7.074 6.367 5.797 33.605 36.909
Mar-15 -4.794 -4.723 -6.259 -6 36 37.554
Apr-15 -3.157 -8.709 -4.622 -9.986 99.72 46.155
May-15 5.836 4.798 4.371 3.521 12.397 15.390
Jun-15 -2.237 -4.225 -3.702 -5.502 30.272 20.368
Jul-15 -1.653 5.964 -3.118 4.687 21.968 -14.614
Aug-15 2.201 0.801 0.736 -0.476 0.227 -0.350
Sep-15 0.875 3.732 -0.59 2.455 6.027 -1.448
Oct-15 -3.493 -2.713 -4.958 -3.99 15.92 19.782
Nov-15 -5.288 -2.786 -6.753 -4.063 16.508 27.437
Dec-15 3.127 1.016 1.662 -0.261 0.068 -0.434
Jan-16 -1.968 0.938 -3.433 -0.339 0.115 1.164
Feb-16 -8.753 -8.379 -10.218 -9.656 93.238 98.665
Mar-16 15.315 11.325 13.85 10.048 100.962 139.165
Apr-16 0.556 -0.507 -0.909 -1.784 3.183 1.622
May-16 1.781 2.171 0.316 0.894 0.799 0.283
Jun-16 -0.944 -3.25 -2.409 -4.527 20.494 10.906
Jul-16 2.656 -3.453 1.191 -4.73 22.373 -5.633
Aug-16 -4.048 -3.457 -5.513 -4.734 22.411 26.099
Sep-16 -3.397 -2.014 -4.862 -3.291 10.831 16.001
Oct-16 -1.343 -1.92 -2.808 -3.197 10.221 8.977
Nov-16 -4.921 -1.806 -6.386 -3.083 9.505 19.688
Dec-16 3.742 3.294 2.277 2.017 4.068 4.593
Jan-17 -5.591 -5.795 -7.056 -7.072 50.013 49.900
Feb-17 10.61 8.238 9.145 6.961 48.456 63.658
Mar-17 -1.435 -0.102 -2.9 -1.379 1.902 3.999
Apr-17 -6.54 -7.202 -8.005 -8.479 71.893 67.874
May-17 11.982 6.347 10.517 5.07 25.705 53.321
Jun-17 -7.074 -3.872 -8.539 -5.149 26.512 43.967
Jul-17 5.486 6.146 4.021 4.869 23.707 19.578
Aug-17 0.108 -3.583 -1.357 -4.86 23.62 6.595
Sep-17 -2.393 -1.165 -3.858 -2.442 5.963 9.421
Oct-17 7.357 4.179 5.892 2.902 8.422 17.099
Nov-17 0.686 3.558 -0.779 2.281 5.203 -1.777
Dec-17 2.511 5.097 1.046 3.82 14.592 3.996
Jan-18 15.233 11.342 13.768 10.065 101.304 138.575
Feb-18 -2.362 -0.408 -3.827 -1.685 2.839 6.448
Mar-18 -6.219 -3.24 -7.684 -4.517 20.403 34.709
86.439 75.363 1872.302 1866.860

Where,
Rm=Return on market
Beta=1866.860/1872.302
=0.99
Alpha =(Ra1-Rm1) *B
= (1.46-1.277) *0.99
=-0.181
5.a) TABLE SHOWING CALCULATION OF RETURN AND RISK OF MINDTREE

COMPANY
Date Price R% (R-R1) (R-R1)2

Apr-13 199.07
May-13 203.59 2.271 -0.514 0.264
Jun-13 207.8 2.068 -0.717 0.514
Jul-13 237.48 14.283 11.498 132.212
Aug-13 256.5 8.009 5.224 27.295
Sep-13 303.37 18.273 15.488 239.888
Oct-13 342.48 12.892 10.107 102.156
Nov-13 345.33 0.832 -1.952 3.812
Dec-13 379.96 10.028 7.243 52.468
Jan-14 353.66 -6.922 -9.706 94.214
Feb-14 406.92 15.060 12.275 150.677
Mar-14 327.34 -19.557 -22.341 499.132
Apr-14 352.22 7.601 4.816 23.194
May-14 372.35 5.715 2.931 8.588
Jun-14 439.58 18.056 15.271 233.203
Jul-14 522.32 18.823 16.038 257.215
Aug-14 560.35 7.281 4.496 20.217
Sep-14 584.83 4.369 1.584 2.509
Oct-14 543.45 -7.076 -9.860 97.223
Nov-14 596.95 9.845 7.060 49.842
Dec-14 638.1 6.893 4.109 16.882
Jan-15 656.87 2.942 0.157 0.025
Feb-15 719.31 9.506 6.721 45.173
Mar-15 649.43 -9.715 -12.499 156.237
Apr-15 607.65 -6.433 -9.218 84.970
May-15 722.57 18.912 16.128 260.100
Jun-15 631.8 -12.562 -15.347 235.521
Jul-15 635.66 0.611 -2.174 4.725
Aug-15 694.96 9.329 6.544 42.828
Sep-15 753.84 8.472 5.688 32.351
Oct-15 780.85 3.583 0.798 0.637
Nov-15 715.77 -8.335 -11.119 123.635
Dec-15 715.13 -0.089 -2.874 8.260
Jan-16 733.92 2.627 -0.157 0.025
Feb-16 707.88 -3.548 -6.333 40.103
Mar-16 649.3 -8.275 -11.060 122.324
Apr-16 675.09 3.972 1.187 1.410
May-16 659.11 -2.367 -5.152 26.540
Jun-16 661.95 0.431 -2.354 5.540
Jul-16 574.72 -13.178 -15.962 254.796
Aug-16 561.43 -2.312 -5.097 25.980
Sep-16 479.42 -14.607 -17.392 302.480
Oct-16 438.99 -8.433 -11.218 125.837
Nov-16 475.14 8.235 5.450 29.705
Dec-16 519.55 9.347 6.562 43.061
Jan-17 448.7 -13.637 -16.421 269.662
Feb-17 471.36 5.050 2.266 5.133
Mar-17 450.49 -4.428 -7.212 52.016
Apr-17 484.1 7.461 4.676 21.867
May-17 542.56 12.076 9.291 86.330
Jun-17 526.32 -2.993 -5.778 33.383
Jul-17 474.99 -9.753 -12.537 157.182
Aug-17 460.7 -3.008 -5.793 33.560
Sep-17 461.6 0.195 -2.589 6.704
Oct-17 478.23 3.603 0.818 0.669
Nov-17 538.85 12.676 9.891 97.838
Dec-17 610.1 13.223 10.438 108.952
Jan-18 768.45 25.955 23.170 536.856
Feb-18 814.45 5.986 3.201 10.249
Mar-18 774 -4.967 -7.751 60.080
164.2929 5463.473
Where,
R1=∑R/n
R1=164.2929 /59
=2.785
Calculation of Risk
SD = √∑(R-R1)2/n
SD =√∑5463.473/59
==9.623
MINDTREE
900
800
700
600
500
400
300
200
100
0
Jul-13
Jul-14
Jul-15
Jul-16
Jul-17
Apr-13
Apr-14
Apr-15
Jan-16
Apr-16
Apr-17
Jan-14
Jan-15
Jan-17
Jan-18
Oct-13
Oct-14
Oct-15
Oct-16
Oct-17
positive correlation 0.551 between the BSE Sensex and stock. The stock price moves in the same
5.b) TABLE SHOWING CALCULATION OF MINDTREE BETA

Apr-13
May-13 2.271 6.23 -0.514 4.953 24.532 -2.544
Jun-13 2.068 3.129 -0.717 1.852 3.430 -1.327
Jul-13 14.283 19.234 16.449 17.957 322.454 295.382
Aug-13 8.009 7.634 4.849 6.357 40.411 30.828
Sep-13 18.273 -2.346 -5.131 -3.623 13.126 18.588
Oct-13 12.892 8.145 5.360 6.868 47.169 36.815
Nov-13 0.832 -0.749 -3.534 -2.026 4.105 7.159
Dec-13 10.028 7.933 5.148 6.656 44.302 34.268
Jan-14 -6.922 4.348 1.563 3.071 9.431 4.801
Feb-14 15.06 3.331 0.546 2.054 4.219 1.122
Mar-14 -19.557 -10.241 -13.026 -11.518 132.664 150.029
Apr-14 7.601 -0.428 -3.213 -1.705 2.907 5.477
May-14 5.715 -3.387 -6.172 -4.664 21.753 28.784
Jun-14 18.056 10.535 7.750 9.258 85.711 71.753
Jul-14 18.823 4.24 1.455 2.963 8.779 4.312
Aug-14 7.281 3.526 0.741 2.249 5.058 1.667
Sep-14 4.369 5.966 3.181 4.689 21.987 14.918
Oct-14 -7.076 0.135 -2.650 -1.142 1.304 3.026
Nov-14 9.845 4.723 1.938 3.446 11.875 6.680
Dec-14 6.893 -5.563 -8.348 -6.84 46.786 57.098
Jan-15 2.942 5.619 2.834 4.342 18.853 12.307
Feb-15 9.506 7.074 4.289 5.797 33.605 24.866
Mar-15 -9.715 -4.723 -7.508 -6 36.000 45.046
Apr-15 -6.433 -8.709 -11.494 -9.986 99.720 114.775
May-15 18.912 4.798 2.013 3.521 12.397 7.089
Jun-15 -12.562 -4.225 -7.010 -5.502 30.272 38.567
Jul-15 0.611 5.964 3.179 4.687 21.968 14.902
Aug-15 9.329 0.801 -1.984 -0.476 0.227 0.944
Sep-15 8.472 3.732 0.947 2.455 6.027 2.326
Oct-15 3.583 -2.713 -5.498 -3.99 15.920 21.935
Nov-15 -8.335 -2.786 -5.571 -4.063 16.508 22.633
Dec-15 -0.089 1.016 -1.769 -0.261 0.068 0.462
Jan-16 2.627 0.938 -1.847 -0.339 0.115 0.626
Feb-16 -3.548 -8.379 -11.164 -9.656 93.238 107.796
Mar-16 -8.275 11.325 8.540 10.048 100.962 85.814
Apr-16 3.972 -0.507 -3.292 -1.784 3.183 5.872
May-16 -2.367 2.171 -0.614 0.894 0.799 -0.549
Jun-16 0.431 -3.25 -6.035 -4.527 20.494 27.319
Jul-16 -13.178 -3.453 -6.238 -4.73 22.373 29.504
Aug-16 -2.312 -3.457 -6.242 -4.734 22.411 29.548
Sep-16 -14.607 -2.014 -4.799 -3.291 10.831 15.792
Oct-16 -8.433 -1.92 -4.705 -3.197 10.221 15.041
Nov-16 8.235 -1.806 -4.591 -3.083 9.505 14.153
Dec-16 9.347 3.294 0.509 2.017 4.068 1.027
Jan-17 -13.637 -5.795 -8.580 -7.072 50.013 60.675
Feb-17 5.05 8.238 5.453 6.961 48.456 37.961
Mar-17 -4.428 -0.102 -2.887 -1.379 1.902 3.981
Apr-17 7.461 -7.202 -9.987 -8.479 71.893 84.676
May-17 12.076 6.347 3.562 5.07 25.705 18.061
Jun-17 -2.993 -3.872 -6.657 -5.149 26.512 34.275
Jul-17 -9.753 6.146 3.361 4.869 23.707 16.367
Aug-17 -3.008 -3.583 -6.368 -4.86 23.620 30.947
Sep-17 0.195 -1.165 -3.950 -2.442 5.963 9.645
Oct-17 3.603 4.179 1.394 2.902 8.422 4.047
Nov-17 12.676 3.558 0.773 2.281 5.203 1.764
Dec-17 13.223 5.097 2.312 3.82 14.592 8.833
Jan-18 25.955 11.342 8.557 10.065 101.304 86.130
Feb-18 5.986 -0.408 -3.193 -1.685 2.839 5.380
Mar-18 -4.967 -3.24 -6.025 -4.517 20.403 27.213
164.2929 75.363 1872.303 1836.585

Where,
Rm=Return on market
Beta=1836.585/1872.302
=0.981
Alpha =(Ra1-Rm1) *B
= (2.785-1.277) *0.981
=1.479
6.a) TABLE SHOWING CALCULATION OF RETURN AND RISK OFHEXAWARE

Apr-13 81.95
May-13 80.5 -1.769 -4.835 23.373
Jun-13 86.7 7.702 4.637 21.499
Jul-13 116.1 33.910 30.845 951.404
Aug-13 128.15 10.379 7.314 53.491
Sep-13 128.45 0.234 -2.831 8.015
Oct-13 133 3.542 0.477 0.228
Nov-13 122.3 -8.045 -11.110 123.439
Dec-13 131.75 7.727 4.662 21.731
Jan-14 134.8 2.315 -0.750 0.563
Feb-14 160.05 18.731 15.666 245.432
Mar-14 150.55 -5.936 -9.001 81.015
Apr-14 151.3 0.498 -2.567 6.590
May-14 143.35 -5.254 -8.320 69.217
Jun-14 158.1 10.290 7.224 52.191
Jul-14 142.3 -9.994 -13.059 170.534
Aug-14 159.9 12.368 9.303 86.546
Sep-14 201.15 25.797 22.732 516.752
Oct-14 197.65 -1.740 -4.805 23.090
Nov-14 218.5 10.549 7.484 56.007
Dec-14 199.95 -8.490 -11.555 133.516
Jan-15 225.6 12.828 9.763 95.316
Feb-15 270.1 19.725 16.660 277.555
Mar-15 312.6 15.735 12.670 160.522
Apr-15 281.05 -10.093 -13.158 173.132
May-15 281.15 0.036 -3.030 9.179
Jun-15 255.4 -9.159 -12.224 149.426
Jul-15 286.8 12.294 9.229 85.179
Aug-15 244.75 -14.662 -17.727 314.246
Sep-15 246.55 0.735 -2.330 5.428
Oct-15 239.75 -2.758 -5.823 33.910
Nov-15 249.9 4.234 1.168 1.365
Dec-15 243.25 -2.661 -5.726 32.790
Jan-16 229.65 -5.591 -8.656 74.929
Feb-16 233.95 1.872 -1.193 1.423
Mar-16 267.55 14.362 11.297 127.619
Apr-16 241.45 -9.755 -12.820 164.362
May-16 216.9 -10.168 -13.233 175.111
Jun-16 228.65 5.417 2.352 5.532
Jul-16 220.8 -3.433 -6.498 42.229
Aug-16 202.7 -8.197 -11.263 126.848
Sep-16 188.7 -6.907 -9.972 99.440
Oct-16 204.35 8.294 5.228 27.336
Nov-16 205.85 0.734 -2.331 5.434
Dec-16 207.15 0.632 -2.434 5.923
Jan-17 194.5 -6.107 -9.172 84.123
Feb-17 223.65 14.987 11.922 142.133
Mar-17 214.7 -4.002 -7.067 49.942
Apr-17 230.15 7.196 4.131 17.064
May-17 234.75 1.999 -1.067 1.137
Jun-17 242.35 3.237 0.172 0.030
Jul-17 262.05 8.129 5.064 25.639
Aug-17 272.9 4.140 1.075 1.156
Sep-17 269.55 -1.228 -4.293 18.428
Oct-17 285.45 5.899 2.834 8.029
Nov-17 336.25 17.796 14.731 217.010
Dec-17 340.25 1.190 -1.876 3.518
Jan-18 381.05 11.991 8.926 79.673
Feb-18 345.9 -9.225 -12.290 151.037
Mar-18 375.35 8.514 5.449 29.690
180.847 5667.475
Where,
R1=∑R/n
R1=180.847 /59
=3.065
Calculation of Risk
SD = √∑(R-R1)2/n
SD =√∑5667.475/59
=9.801
HEXAWARE
450
400
350
300
250
200
150
100
50
0
Jul-13
Jul-14
Jul-15
Jul-16
Jul-17
Apr-13
Apr-14
Apr-15
Jan-16
Apr-16
Apr-17
Jan-14
Jan-15
Jan-17
Jan-18
Oct-13
Oct-14
Oct-15
Oct-16
Oct-17
6.b) TABLE SHOWING CALCULATION OF HEXAWARE BETA

Date Ra Rm Ra-Ra1
Rm1 Rm1)2 Rm1)
Apr-13
May-13 -1.769 6.23 -4.8342 4.953 24.5322 -23.944
Jun-13 7.702 3.129 4.6368 1.852 3.4299 8.587
Jul-13 33.91 19.234 30.8448 17.957 322.4538 553.880
Aug-13 10.379 7.634 7.3138 6.357 40.4114 46.494
Sep-13 0.234 -2.346 -2.8312 -3.623 13.1261 10.257
Oct-13 3.542 8.145 0.4768 6.868 47.1694 3.275
Nov-13 -8.045 -0.749 -11.1102 -2.026 4.1047 22.509
Dec-13 7.727 7.933 4.6618 6.656 44.3023 31.029
Jan-14 2.315 4.348 -0.7502 3.071 9.4310 -2.304
Feb-14 18.731 3.331 15.6658 2.054 4.2189 32.178
-
Mar-14 -5.936 -10.241 -9.0012 132.6643 103.676
11.518
Apr-14 0.498 -0.428 -2.5672 -1.705 2.9070 4.377
May-14 -5.254 -3.387 -8.3192 -4.664 21.7529 38.801
Jun-14 10.29 10.535 7.2248 9.258 85.7106 66.887
Jul-14 -9.994 4.24 -13.0592 2.963 8.7794 -38.694
Aug-14 12.368 3.526 9.3028 2.249 5.0580 20.922
Sep-14 25.797 5.966 22.7318 4.689 21.9867 106.589
Oct-14 -1.74 0.135 -4.8052 -1.142 1.3042 5.488
Nov-14 10.549 4.723 7.4838 3.446 11.8749 25.789
Dec-14 -8.49 -5.563 -11.5552 -6.84 46.7856 79.038
Jan-15 12.828 5.619 9.7628 4.342 18.8530 42.390
Feb-15 19.725 7.074 16.6598 5.797 33.6052 96.577
Mar-15 15.735 -4.723 12.6698 -6 36.0000 -76.019
Apr-15 -10.093 -8.709 -13.1582 -9.986 99.7202 131.398
May-15 0.036 4.798 -3.0292 3.521 12.3974 -10.666
Jun-15 -9.159 -4.225 -12.2242 -5.502 30.2720 67.258
Jul-15 12.294 5.964 9.2288 4.687 21.9680 43.255
Aug-15 -14.662 0.801 -17.7272 -0.476 0.2266 8.438
Sep-15 0.735 3.732 -2.3302 2.455 6.0270 -5.721
Oct-15 -2.758 -2.713 -5.8232 -3.99 15.9201 23.235
Nov-15 4.234 -2.786 1.1688 -4.063 16.5080 -4.749
Dec-15 -2.661 1.016 -5.7262 -0.261 0.0681 1.495
Jan-16 -5.591 0.938 -8.6562 -0.339 0.1149 2.934
Feb-16 1.872 -8.379 -1.1932 -9.656 93.2383 11.522
Mar-16 14.362 11.325 11.2968 10.048 100.9623 113.510
Apr-16 -9.755 -0.507 -12.8202 -1.784 3.1827 22.871
May-16 -10.168 2.171 -13.2332 0.894 0.7992 -11.830
Jun-16 5.417 -3.25 2.3518 -4.527 20.4937 -10.647
Jul-16 -3.433 -3.453 -6.4982 -4.73 22.3729 30.736
Aug-16 -8.197 -3.457 -11.2622 -4.734 22.4108 53.315
Sep-16 -6.907 -2.014 -9.9722 -3.291 10.8307 32.819
Oct-16 8.294 -1.92 5.2288 -3.197 10.2208 -16.716
Nov-16 0.734 -1.806 -2.3312 -3.083 9.5049 7.187
Dec-16 0.632 3.294 -2.4332 2.017 4.0683 -4.908
Jan-17 -6.107 -5.795 -9.1722 -7.072 50.0132 64.866
Feb-17 14.987 8.238 11.9218 6.961 48.4555 82.988
Mar-17 -4.002 -0.102 -7.0672 -1.379 1.9016 9.746
Apr-17 7.196 -7.202 4.1308 -8.479 71.8934 -35.025
May-17 1.999 6.347 -1.0662 5.07 25.7049 -5.406
Jun-17 3.237 -3.872 0.1718 -5.149 26.5122 -0.885
Jul-17 8.129 6.146 5.0638 4.869 23.7072 24.656
Aug-17 4.14 -3.583 1.0748 -4.86 23.6196 -5.224
Sep-17 -1.228 -1.165 -4.2932 -2.442 5.9634 10.484
Oct-17 5.899 4.179 2.8338 2.902 8.4216 8.224
Nov-17 17.796 3.558 14.7308 2.281 5.2030 33.601
Dec-17 1.19 5.097 -1.8752 3.82 14.5924 -7.163
Jan-18 11.991 11.342 8.9258 10.065 101.3042 89.838
Feb-18 -9.225 -0.408 -12.2902 -1.685 2.8392 20.709
Mar-18 8.514 -3.24 5.4488 -4.517 20.4033 -24.612
75.363 1872.3033 1909.314
Where,
Rm=Return on market
Beta=1909.314/1872.302
=1.019
Alpha =(Ra1-Rm1) *B
= (3.065-1.277) *1.019
=1.822
7. Calculation of CAPM Model
Particulars Returns Beta

WIPRO 1.036 0.939
INFOSYS 1.436 1.124
TCS 1.46 0.99
MINDTREE 2.785 0.981
HEXAWARE 3.065 1.019
TRREASURY-BILL 0.521
MARKET INDEX 1.277
RI=Rf + Beta (Rm-Rf)

WIPRO = 0.521 + 0.939 (1.277-0.521)
= 0.521 + 0.709
=1.231
INFOSYS = 0.521 + 1.124 (1.277-0.521)
= 0.521 + 0.8491
= 1.371
TCS =0.521 + 0.99(1.277-0.521)
=0.521 + 0.748
=1.269
MINDTREE =0.521 + 0.981(1.277-0.521)

=0.521 +0.7420
=1.263
HEXAWARE =0.521 + 1.019(1.277-0.521)
=0.521 +0.770
= 1.291
(Xi)(Ri) = 0.20*1.036 + 0.20*1.436 + 0.20*1.46 + 0.20*2.785 + 0.20*3.065
= (0.2072) + (0.2872) +(0.292) + (0.557) + (0.613)
= 1.9564
8. Calculation of Correlation
Sensex Wipro Infosys TCS Mindtree Hexaware

Rm R% R% R% R% R%
6.23 -6.13395 7.75 8.962 2.271 -1.769
3.129 7.11661 3.557 1.254 2.068 7.702
19.234 25.01429 19.008 19.541 14.283 33.91
7.634 10.656 4.488 11.462 8.009 10.379
-2.346 -2.033 -2.738 -4.767 18.273 0.234
8.145 0.608 9.723 9.423 12.892 3.542
-0.749 -1.258 1.356 -4.916 0.832 -8.045
7.933 18.707 3.936 8.299 10.028 7.727
4.348 2.848 6.137 3.005 -6.922 2.315
3.331 3.792 3.264 1.637 15.06 18.731
-10.241 -9.076 -14.171 -6.36 -19.557 -5.936
-0.428 -3.797 -3.1 2.873 7.601 0.498
-3.387 -3.257 -7.418 -2.064 5.715 -5.254
10.535 7.913 10.366 12.837 18.056 10.29
4.24 -0.242 3.673 8.185 18.823 -9.994
3.526 4.003 6.784 -2.045 7.281 12.368
5.966 5.476 4.275 8.461 4.369 25.797
0.135 -5.517 8.106 -4.881 -7.076 -1.74
4.723 3.912 7.597 1.48 9.845 10.549
-5.563 -5.414 -9.562 -3.345 6.893 -8.49
5.619 9.48 8.703 -2.885 2.942 12.828
7.074 8.732 7.097 7.832 9.506 19.725
-4.723 -4.769 -3.409 -4.794 -9.715 15.735
-8.709 -14.218 -12.37 -3.157 -6.433 -10.093
4.798 4.282 4.119 5.836 18.912 0.036
-4.225 -3.109 -2.556 -2.237 -12.562 -9.159
5.964 4.594 9.408 -1.653 0.611 12.294
0.801 0.408 1.591 2.201 9.329 -14.662
3.732 4.494 5.958 0.875 8.472 0.735
-2.713 -3.992 -2.103 -3.493 3.583 -2.758
-2.786 -0.105 -4.19 -5.288 -8.335 4.234
1.016 -2.252 1.479 3.127 -0.089 -2.661
0.938 0.25 5.459 -1.968 2.627 -5.591
-8.379 -7.359 -6.962 -8.753 -3.548 1.872
11.325 8.359 12.383 15.315 -8.275 14.362
-0.507 -1.715 -0.583 0.556 3.972 -9.755
2.171 -1.355 3.221 1.781 -2.367 -10.168
-3.25 2.226 -6.329 -0.944 0.431 5.417
-3.453 -2.339 -8.268 2.656 -13.178 -3.433
-3.457 -10.05 -3.459 -4.048 -2.312 -8.197
-2.014 -2.622 0.125 -3.397 -14.607 -6.907
-1.92 -2.646 -3.429 -1.343 -8.433 8.294
-1.806 0.022 -2.698 -4.921 8.235 0.734
3.294 1.914 3.614 3.742 9.347 0.632
-5.795 -3.565 -8.054 -5.591 -13.637 -6.107
8.238 6.869 8.931 10.61 5.05 14.987
-0.102 5.498 0.84 -1.435 -4.428 -4.002
-7.202 -4.125 -9.933 -6.54 7.461 7.196
6.347 8.711 6.26 11.982 12.076 1.999
-3.872 -3.656 -4.227 -7.074 -2.993 3.237
6.146 11.691 8.085 5.486 -9.753 8.129
-3.583 3.478 -9.493 0.108 -3.008 4.14
-1.165 -6.052 -1.808 -2.393 0.195 -1.228
4.179 4.645 2.548 7.357 3.603 5.899
3.558 -0.748 5.783 0.686 12.676 17.796
5.097 7.402 6.6 2.511 13.223 1.19
11.342 -2.792 10.714 15.233 25.955 11.991
-0.408 -3.89 2.051 -2.362 5.986 -9.225
-3.24 -3.876 -3.394 -6.219 -4.967 8.514
Correlation 0.787383 0.936388 0.875189 0.550679 0.586365
Interpretation
Finally the above table showing the correlation of 5 selected major IT companies. Market and
Return are correlated each other. Whenever market return is growing in the same way the
company also growing. Both market returns and company returns are showing positive
correlation is 0.936388.
HYPOTHESIS ANALYSIS;
The mean t-test for the equality of means at 95% of confidence level for the abnormal returns
and risk of company return and risk. Here the test the Spearman’s rank method applied.
Hypothesis;
Null Hypothesis (H0): There is no negative relationship between Return and Risk.
H1: There is a relationship between Return and Risk.
D(Rank
Years
Returns Rank Risk Rank diff) D2
2013-14 1.036 5 6.727 4 1 1
2014-15 1.436 4 6.764 3 1 1
2015-16 1.46 3 6.42 5 2 4
2016-17 2.785 2 9.623 2 0 0
2017-18 3.065 1 9.801 1 0 0
Total 6
P = 1-6∑62/5(52-1)
= 1-6*6/5*24
= 1-36/120
= 1-0.3
= 0.7
t - Test Analysis
t=r√n-2/√1-r2
=0.7√5-2√1-0.72
=0.7√3√1-0.49
=0.7*1.732*1-0.49
=0.7224
Interpretation:
Above the table value of the t-test at 5% significance level of (n-2), (5-2) 3.182 and our
calculated value is 0.7224. That is less than the table value, it means null hypothesis is accepted.
So the t-test shows that there is a positive relationship between Return and Risk.
CHAPTER -5
FINDINGS, SUGGESTIONS AND CONCLUSIONS
FINDINGS
 The risk of 2013 to 2018 with reference to WIPRO stock displays that 6.727%, and gives
the return on a monthly average 1.036%.
 The risk of 2013 to 2018 with reference to INFOSYS stock displays that 6.764%, and
gives the return on a monthly average 1.436%.
 The risk of 2013 to 2018 with reference to TCS stock displays that 6.42%, and gives the
return on a monthly average 1.46%.
 The risk of 2013 to 2018 with reference to MINDTREE stock displays that 9.623%, and
 The risk of 2013 to 2018 with reference to HEXAWARE stock displays that 9.801%, and
 The study shows that, more investment in commodity market, rather than equity market.
 Brokers play a very important role in investment decision of the investor.
 Market is volatile; we can often find decrease and increase in share prices of the
companies.
Suggestions:
 Investors should go for long term investment.
 Speculators and traders can take advantage of market volatility.
 Before investing shareholders should use the variables like fundamental analysis,
technical analysis, to determine the stock price effectively.
 Shareholders should analyze the price earnings ratio net turnover, Sensex and nifty and
capitalization rate from the previous years, which indicates further, increase or decrease
in shares.
 It is recommended that investors should opt equity shares as the best investment avenues
because of capital appreciation.
Conclusion:
Saving money is not enough. Each of also need to invest one’s savings intelligently in order to
have enough money available for funding the higher education of one’s children, buying a house,
or for one’s own golden years.
The study will guide the new investors who wants to invest in equity by providing knowledge
about how to measure the risk and return of particular scrip. The study recommends new investors
to go for commodity market, because of high risk and market instability.
For this study 5 IT sector company have been selected to know the risk and return of the selected
companies. High risk is creating a high return in the above 5 companies return to the investors the
company MINDTREE is have to get the high return and high risk in the market. The sensitiveness
of the company’s stock returns to the changes in the market returns is observed as revealed in the
data analysis. The percentage in which some securities should have been invested to gain finest
return is also calculated and characterized. When the BSE SENSEX changes, companies stock
prices also have a tendency to change. This directs that some original factors affect the market
index as well as the company’s stock price. Every investor has to calculate the risk and return
analysis before investors investing the particular organization. It is crucial to know the routine of
the securities in the market for the better investment decision. The investor has to participate in
such securities which have sensible risk and high return and if the investor is a risk taker then he
can invest in high risk securities with high return on securities.
CHAPTER – 6
BIBILOGRAPHY &ANNEXURE
BIBILOGRAPHY
Reference Books
SL.NO BOOKS AUTHOR & PUBLICATION
1 Securities Analysis & Portfolio Punithavathi pandian
Management Vikas publishing
2 Investment Management Preethi Singh
Himalaya publishing house
Journals;
 Dr Narayanasamy, Ms. R.Thirugnanasoundari. R. SSRG International Journal of economic
science and Management Studies (SSRG-IJEMS) – volume3 issue2 March to April 2016
 Narayan Gaonkar31 Dr. Kushalapp Volume four, Number 1, Jan – March’ 2015 ISSN
(Print):2279-0896 PEZZOTTAITE JOURNALS
Others;
 Company broachers
 Business line newspapers, business today, capital market
Website;
 www.geojit.com
 www.bseindia.com
 www.moneycontrol.com

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CHAPTER 1

Indian capital market’s land marks and development:

 Amendment to banking regulation act in 1983 permitting banks to undertake non-banking

ORIGINS OF THE INDIAN STOCK EXCHANGES;

FUNCTIONS OF THE STOCK EXCHANGE

NATIONAL STOCK EXCHANGE (NSE)

BENEFITS OF NSE TO TRADING MEMBERS:

BENEFITS OF NSE TO INVESTORS:

 Assured of best prices in the market

VISION AND MISSION

 To understand and respect customers’ needs to consistently deliver total quality

Sl.No Contribution Percentage

 Sherkhan stock broking limited

FUTURE GROWTH AND PROSPECTUS

Profit and Loss Account as on 31st March 2017 to 2013

Particulars Current Assets Current Liabilities current ratio

Proprietary Ratio = Shareholders fund/Total assets

Risk and return analysis

 Risk returns to dispersion of a variable.

Calculation of CAPM(SML) Model Ri = Rf + Beta ( Rm-Rf )

 Dr Narayanasamy, Ms. R.Thirugnanasoundari March to April 2016 - it'll be ready to

 Dr S krishnaprabha Mr M vijayakumar 2013- to create comparative study of risk and

 Ananda mukarji: American state A&M International University

 Hasan Ali and Habibolah (2011)

 Koo and Olson (2008)

STATEMENT OF THE PROBLEM

NEED FOR THE STUDY

OBJECTIVES OF THE STUDY

SCOPE OF THE STUDY

Methods of primary information includes;

H0: There is no negative relationship between Return and Risk.

CHAPTER-4 Data Analysis and Interpretation

CHAPTER-5 Findings, Suggestions and Conclusion

Month Sensex R% (R-R1) (R-R1)2

2.a) TABLE SHOWING CALCULATION OF RETURN AND RISK OF WIPRO

Date Price R% R-R1 (R-R1)2

Calculation of Return = (P1-P0)/P0*100

Analysis and Interpretation:

2.b) TABLE SHOWING CALCULATION OF WIPRO BETA

Rm- (Rm- (Ra-Ra1)(Rm-

Beta = [∑(Ra-Ra1) (Rm-Rm1)]/∑(Rm-Rm1)2

3.b)TABLE SHOWING CALCULATION OF INFOSYS BETA

Beta = [∑(Ra-Ra1) (Rm-Rm1)]/∑(Rm-Rm1)2

Date Price R% R-R1 (R-R1)2

4.b)TABLE SHOWING CALCULATION OF TCS BETA

Rm- (Rm- (Ra-Ra1)(Rm-

Beta = [∑(Ra-Ra1) (Rm-Rm1)]/∑(Rm-Rm1)2

5.a) TABLE SHOWING CALCULATION OF RETURN AND RISK OF MINDTREE

Date Price R% (R-R1) (R-R1)2

5.b) TABLE SHOWING CALCULATION OF MINDTREE BETA

Rm- (Rm- (Ra-Ra1)(Rm-

Beta = [∑(Ra-Ra1) (Rm-Rm1)]/∑(Rm-Rm1)2

Date Price R% R-R1 (R-R1)2

6.b) TABLE SHOWING CALCULATION OF HEXAWARE BETA

Rm- (Rm- (Ra-Ra1)(Rm-

Particulars Returns Beta

RI=Rf + Beta (Rm-Rf)

MINDTREE =0.521 + 0.981(1.277-0.521)

Sensex Wipro Infosys TCS Mindtree Hexaware

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