A PROJECT REPORT ON

RISK AND RETURN ON EQUITY STOCKES WITH REFERENCE TO

INTERFACE FINANCIAL SERVICES LTD

&

INTERNATIONAL COMBUSTION INDIA LTD (INTC)

SUBMITTEDY BY

ABINAY ALLEY
ABSTRACT
 ANALYSIS OF THE STUDY
STOCK 1: Interface Financial Services Ltd

YEAR CLOSE PRICE RETURNS(X)

 PREVIOUS CLOSE 0.16  
20-Aug 0.18 12.50
19-Aug 0.17 -5.56
11-Aug 0.16 -5.88
4-Aug 0.17 6.25
31-Jul 0.17 0.00
30-Jul 0.17 0.00
29-Jul 0.16 -5.88
27-Jul 0.15 -6.25
21-Jul 0.15 0.00
17-Jul 0.14 -6.67
7-Jul 0.14 0.00
6-Jul 0.15 7.14
3-Jul 0.15 0.00
29-Jun 0.16 6.67
24-Jun 0.16 0.00
23-Jun 0.16 0.00
22-Jun 0.17 6.25
19-Jun 0.18 5.88
16-Jun 0.18 0.00
15-Jun 0.18 0.00
12-Jun 0.19 5.56
FORMULAS APPLIED FOR THE STOCKS
Return (%) = Current Price (P1) – Previous Price (P0) * 100
Previous Price (P0)
Average Return ( μ ) = Σx / N
Variance (σ2) = Σ (x – μ)2 / N – 1 x = Return; μ = Average Return

Standard Deviation ( σ ) = √ σ2
Systematic Risk (Beta) ( β ) = N Σ xy – Σx * Σy x = Market Return; y = Return on Stock
N Σx2 – (Σx)2
 STATISTICAL ANALYSIS

Mean 0.95288

Standard Deviation 5.29062

Sample Variance 27.9907

COVERIANCE 0.03

: Interface Financial Services Ltd

STOCK RETURNS
12.50 -5.56 -5.88 6.25 -5.88 -6.25 -6.67 7.14 6.67 6.25 5.88 5.56

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
STOCK II: International Combustion India Ltd (INTC)

Date Price Open RETURNS(X)

13-Oct-22 325 321.05 -1.22

14-Oct-22 325.5 325.6 0.03

17-Oct-22 322.6 322.05 -0.17

18-Oct-22 321.6 322.1 0.16

19-Oct-22 322.75 329.9 2.22

20-Oct-22 322.5 322.6 0.03

21-Oct-22 322 323 0.31

24-Oct-22 326.2 328 0.55

25-Oct-22 326.35 334.7 2.56

27-Oct-22 330.3 322.7 -2.30

28-Oct-22 330 323.55 -1.95

31-Oct-22 329.95 327.2 -0.83

1-Nov-22 330 330 0.00

2-Nov-22 330.05 335 1.50

3-Nov-22 334 334.7 0.21

7-Nov-22 333.9 348 4.22

9-Nov-22 322.35 333.05 3.32

10-Nov-22 321 331.8 3.36

11-Nov-22 317.55 316.05 -0.47

 STATISTICAL ANALYSIS

Mean (AVERAGE RETURN) 0.61

Standard Deviation 1.81

Sample Variance 3.27

COVARIANCE -0.5814

International Combustion India RETURNS(X)

4.22

3.32 3.36
2.56
2.22
1.50

0.55
0.31 0.21
0.03 -0.17 0.16 0.03 0.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
-0.47
-0.83
-1.22
-1.95
-2.30

INTERPRETATION: