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    Shivam Kumar
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    The document compares the monthly stock prices and returns of Paytm and Wipro over a 12 month period. It finds that while Paytm had average yearly returns close to -9%, lower than Wipro's -5%, Paytm also had higher risk as shown by its larger standard deviation and variance. Additionally, Paytm's beta was lower than Wipro's, suggesting it was impacted more by non-market or unsystematic risk factors. In conclusion, it recommends Paytm review its strategies to better account for risks, given its prominence as a company.

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    The document compares the monthly stock prices and returns of Paytm and Wipro over a 12 month period. It finds that while Paytm had average yearly returns close to -9%, lower than Wipro's -5%, Paytm also had higher risk as shown by its larger standard deviation and variance. Additionally, Paytm's beta was lower than Wipro's, suggesting it was impacted more by non-market or unsystematic risk factors. In conclusion, it recommends Paytm review its strategies to better account for risks, given its prominence as a company.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    7 views2 pages

    CAPF

    Uploaded by

    Shivam Kumar
    The document compares the monthly stock prices and returns of Paytm and Wipro over a 12 month period. It finds that while Paytm had average yearly returns close to -9%, lower than Wipro's -5%, Paytm also had higher risk as shown by its larger standard deviation and variance. Additionally, Paytm's beta was lower than Wipro's, suggesting it was impacted more by non-market or unsystematic risk factors. In conclusion, it recommends Paytm review its strategies to better account for risks, given its prominence as a company.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Date Price (Paytm) Price (Wipro) Paytm (Retn.

    )
    12/1/2021 1334.550049 637.25
    1/1/2022 916.849976 715.349976 -0.456
    2/1/2022 798.099976 572.599976 -0.149
    3/1/2022 528.450012 555.799988 -0.510
    4/1/2022 581.650024 591.900024 0.091
    5/1/2022 652.950012 508.799988 0.109
    6/1/2022 675.700012 478.049988 0.034
    7/1/2022 706.799988 416.049988 0.044
    8/1/2022 717.849976 423.700012 0.015
    9/1/2022 637.950012 413.549988 -0.125
    10/1/2022 707.450012 394.25 0.098
    10/7/2022 707.450012 408.100006 0.000
    Paytm
    Average Return (AM) -0.077
    Average Return (GM) -0.107

    Stand Devition 0.2075


    Variance 0.0431
    Beta -0.521

    Interpretation
    - In spite of the company showing return close to -9% yearly, it is still close to
    Wipro (-5%)

    - The reason being Paytm has got high risk (5%) as reflected in Standard Deviation
    of the company as against Wipro (4%).

    - Beta of Paytm is lesser (0.59) as compared to Wipro (1), it appears that there exi
    significant impact of unsystematic risk.

    Summary: Paytm may review few strategies to incorporate changes in the system
    as it is a prominent company with high weightage in the Wipro.
    wipro (Retn.)

    0.109
    -0.249
    -0.030
    0.061
    -0.163
    -0.064
    -0.149
    0.018
    -0.025
    -0.049
    0.034
    Wipro 12 Months
    -0.046 -0.925003 -0.554
    -0.052

    0.1013 Total risk = systemeticRisk( beta) + unsysetemetic Risk


    0.0103 (Beta = Covariance of RIL and NIFTY / Variance of NIFTY
    -0.124

    lose to -9% yearly, it is still close to

    (5%) as reflected in Standard Deviation

    d to Wipro (1), it appears that there exists

    es to incorporate changes in the system


    ightage in the Wipro.

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