Student’s details:

Student’s Name Padmanap E

Reg. No. 2127307
Section F2

Risk-Return Analysis of any three asset classes – A summary table of the results
Panel - A PERIOD 1 - Returns PERIOD 1 - Risk
  Stock Close Stock Close Price in Annualized Risk Expected Holding Annualized Coefficient of Sharpe Ratio
Price in January December 2019 returns or Premium Return Period Standard Variance
2019 Gain/Loss returns Return Deviation
Equity 367.20 491.55 0.163% 0.0640% -2.359% 45.54% 441.500% 1949.2257% 0.037%
10-year Govt. 7.418 6.554 -0.2487% Nil Nil 105.75% 441.28% 1947.29% -0.06%
Bond
BSE Nil Nil Nil Nil Nil Nil Nil Nil Nil
SENSEX/
NIFTY50
Gold 31531 39095 0.091% -2.384% -1.971% 23.99% 434.289% 1886.0689% 0.021%
Spot/ETF
Crude Oil Nil Nil Nil Nil Nil Nil Nil Nil Nil

Panel - B PERIOD 2 - Returns PERIOD 2 - RISK

  Stock Close Stock Close Price in Annualized Risk Expected Holding Annualized Coefficient of Sharpe Ratio
Price in January December 2020 returns or Premium Return Period Standard Variance
2020 Gain/Loss returns Return Deviation
Equity 491.65 381.10 0.152% 0.0645% -1.483% -53.35% 410.407% 1684.3381% 0.037%
10-year Govt. 6.501 5.894 -1.384% Nil Nil 103.176% 430.540% 1853.649% -0.340%
Bond
BSE Nil Nil Nil Nil Nil Nil Nil Nil Nil
SENSEX/
NIFTY50
Gold 38977 50005 0.124% -3.290% -2.720% 28.30% 497.381% 2473.8768% 0.025%
Spot/ETF
Crude Oil Nil Nil Nil Nil Nil Nil Nil Nil Nil

Panel - C PERIOD 3 - Returns PERIOD 3 - Risk

  Stock Close Stock Close Price in Annualized Risk Expected Holding Annualized Coefficient of Sharpe Ratio
Price in January December 2021 returns or Premium Return Period Standard Variance
2021 Gain/Loss returns Return Deviation
Equity 381.95 377.95 0.151% 0.0691% -5.126% -69.75% 423.807% 1796.1265% 0.037%
10-year Govt. 5.898 6.454 -1.037% Nil Nil 106.633% 444.950% 1979.809% -0.250%
Bond
BSE Nil Nil Nil Nil Nil Nil Nil Nil Nil
SENSEX/
NIFTY50
Gold 50143 47860 -0.021% Nil Nil -4.55% 460.323% 2118.9694% -0.005%
Spot/ETF
Crude Oil Nil Nil Nil Nil Nil Nil Nil Nil Nil

Panel – D COMPARISON TABLE

Period /Company Comparison between Comments on Risk and Returns
Jan 2019- Dec 2019 Equity Vs Govt. Bond The fact that money is floating more, quantitative easing, and chasing yields pushed
bond yields even lower in 2019.
Jan 2019- Dec 2019 Equity Vs Gold spot/ETF During this year, 2019 the prices of Gold and Equity fluctuates as when stock prices
fall and gold prices rise at the same time that stock prices rise.
Jan 2019- Dec 2019 Equity Vs Crude Oil Nil
Jan 2019- Dec 2019 Equity vs SENSEX / NIFTY50 Nil
Jan 2019- Dec 2019 Govt. Bond vs Gold Spot/ETF During 2019, the comparison Govt. Bond and Gold Spot follows traditional argument
of increasing govt. bond price affected the price of Gold (Rising yields are bad for
gold)
Jan 2019- Dec 2019 Govt. Bond vs Crude Oil Nil
Jan 2019- Dec 2019 Govt. Bond vs SENSEX/NIFTY50 Nil
Jan 2019- Dec 2019 Gold Spot/ETF vs Crude Oil Nil
Jan 2019- Dec 2019 Gold Spot/ ETF vs SENSEX/NIFTY50 Nil
Jan 2019- Dec 2019 Crude Oil vs SENSEX/ NIFTY 50 Nil

Period /Company Comparison between Comments on Risk and Returns

Jan 2020 – Dec 2020 Equity Vs Govt. Bond Equities become more appealing as bond yields fall even during 2020
Jan 2020 – Dec 2020 Equity Vs Gold spot/ETF Gold and Equity are both cyclical in nature, rising and falling of prices during the year
2020 in response to a variety of reasons (It is viewed by people as a safer investment
compare to equity)
Jan 2020 – Dec 2020 Equity Vs Crude Oil Nil
Jan 2020 – Dec 2020 Equity vs SENSEX / NIFTY50 Nil
Jan 2020 – Dec 2020 Govt. Bond vs Gold Spot/ETF In the year 2020, Gold spot price was rising steadily while the Govt. Bond yields was
decreasing. But the relation between this two has become stronger over the years.
Jan 2020 – Dec 2020 Govt. Bond vs Crude Oil Nil
Jan 2020 – Dec 2020 Govt. Bond vs SENSEX/NIFTY50 Nil
Jan 2020 – Dec 2020 Gold Spot/ETF vs Crude Oil Nil
Jan 2020 – Dec 2020 Gold Spot/ ETF vs SENSEX/NIFTY50 Nil
Jan 2020 – Dec 2020 Crude Oil vs SENSEX/ NIFTY 50 Nil

Period /Company Comparison between Comments on Risk and Returns

Jan 2021-Dec 2021 Equity Vs Govt. Bond The market has grown so distorted, as anticipated for 2019 and 2020, that investors are
now participating in bond rallies and investing in equities for yield.
Jan 2021-Dec 2021 Equity Vs Gold spot/ETF During 2021, the equity has been performed well comparatively as the investors invest
when prices are low, they buy them and keep them until they reach expected levels.
Jan 2021-Dec 2021 Equity Vs Crude Oil Nil
Jan 2021-Dec 2021 Equity vs SENSEX / NIFTY50 Nil
Jan 2021-Dec 2021 Govt. Bond vs Gold Spot/ETF 2021 comparison table shows the peak and troughs in Govt. Bond and Gold Spot. As
also it shows when govt. bond are at their lowest, gold spot thrives.
Jan 2021-Dec 2021 Govt. Bond vs Crude Oil Nil
Jan 2021-Dec 2021 Govt. Bond vs SENSEX/NIFTY50 Nil
Jan 2021-Dec 2021 Gold Spot/ETF vs Crude Oil Nil
Jan 2021-Dec 2021 Gold Spot/ ETF vs SENSEX/NIFTY50 Nil
Jan 2021-Dec 2021 Crude Oil vs SENSEX/ NIFTY 50 Nil

Period /Company Comparison between Comments on Risk and Returns

Equity 2019 vs 2020  Risk between the years 2019 and 2020 are higher than 2020. As risk is higher
the return on equity for the year 2019 is higher than 2020
 As it clearly indicates that increased potential investment on Equity usually it
goes with increased risk.
10-year Govt. Bond 2019 vs 2020  The percentage has been reduced for 10-year Govt. Bond from 2019 to 2020.
 This is lower than the long term average of the year 2019.
BSE SENSEX/ 2019 vs 2020  Nil
NIFTY50
Gold Spot/ETF 2019 vs 2020  The comparison table shows that Gold spot has inclined than the previous year
2019 and even the risk for the Gold spot has also increased.
 This clearly indicates that investors are becoming more risk averse and are
putting money in gold, which increases the risk on Gold spot.
Crude Oil 2019 vs 2020 Nil
Equity 2020 vs 2021  Risk for the year 2021 is higher than risk for the year 2020 but at the same time
return on equity is higher for the year 2020, which is not like the previous
comparison of Equity during 2019 and 2020.
 This result could be the reason of investors reduced risk associated with their
portfolio and limit their potential returns
10-year Govt. Bond 2020 vs 2021  10-year Govt. Bond further reduces at the beginning and rises at the end, which
results in increase in return compare to the previous year 2020.
 The risk for this particular year has also increased further than previous year as
it is more liquid and widely traded bond.
BSE SENSEX/ 2020 vs 2021 Nil
NIFTY50
Gold Spot/ETF 2020 vs 2021  During 2020 and 2021, Gold prices further increase and reduced at the year
end increased the risk for the gold than the previous year 2020.
 This may be the reason as investors/people are paying the bank or government
 to hold their money and invest in gold to get the opportunity of increase on the
return on investment.
Crude Oil 2020 vs 2021 Nil

Major Findings:
1. The influence of financial and economic variables on equity, government bonds, and gold spot were investigated using data from official
sources in this Risk and Return study results summary.
2. Bond effects are an important conclusion to examine; dropping bond prices have been linked to higher equities prices.
3. Stronger economic fundamentals drew investors away from bonds and into stocks, while worse economic growth did the opposite.
4. A favourable influence on equity market returns is expected, as rising prices are a sign of healthy economic growth.
5. The danger drawn to investors by the dispersion of returns is the reason for negative equities returns or other investments. Investors' risk
sentiment is influenced by this dispersion, and as a result, investment prices are declining.