1.3.

Statements of Problem
There are lots of risk factors by Everest Bank limited. The problem of this study is presented by
raising the following research questions:
 What is risk and return level of stock of Everest Bank Limited?
 How can investor make higher return at lower risk?

1.4. Objective of the study

The main objective of this study to analyze the investment and return environment on Everest
bank Limited. For this study the main objective are as follows:
 To examine risk and return of Everest Bank Limited.
 To measure risk per unit of stock of Everest bank Limited.

1.5. Rationale of the study

This study may be very useful for the financial managers of the Everest Bank Limited in framing
policies for managing the firm’s risk and return. Furthermore, there is clearly enormous scope for
more research work in the present study.
 This study will help to measure the investment pattern of the bank.
 This study will help investor for making investment decision.
 This study will be equally useful to the investors, creditors & the management of the
bank.

1.6. Review of literature

A literature review is a summary and analysis of current knowledge about a particular topic or
areas of inquiry. In other words, the analysis of previous studies for knowing the research in
detail is known, as the literature review. After selecting the topic of the research should study
different journals, periodical, newspapers, published or unpublished bibliographies, book etc. to
collect or gather the information about the selected topic of the research. This process of
studying different educational materials is known as a review of the literature.
Literature reviews plays a significant role in facilitating other steps of the research process.
Academic journals conference proceedings, government reports, book etc. must be consulted
depending on the nature of the problem.

1.7. Research Methodology

The method which is use in the research is called methodology. Research methodology is a way
to find result of a given problem on a specific matter. In methodology, researcher uses different
criteria for solving or searching the given research problem. In methodology, researcher always
tries to search the given question. Systematically in our one way and find out all the answers till
conclusion. If research does not work systematically on problem, there would be less possibility
to find out the result. Generally, for solving of research problem, data are collect by two types of
sources. Primary data is information obtained directly from first- hand sources. While secondary
data is information obtained indirectly which collected by another person for other studies. One
of different between the two types of data is that secondary data takes less time to obtain, while
primary data takes more time because the information has to be gathered from scratch. So, the
method I have used is listed below:

1.7.1. Research Design

A research design is the arrangement of condition and analysis of data that aims to combine
relevance to the research purpose. Research design is the plan, structure and strategy of
investigations conceived so as to obtain answers to research questions to control variances. The
study is based on descriptive and analytical research design.

1.7.2. Sources of Data

Mainly, the study is conducted on the basis of the secondary data. The data required for the
analysis are directly obtained from the balance sheet and the profit and loss account of the
concerned commercial bank’s annual reports. the secondary data are compiled, processed and
tabulated in the time series as per the need and objectives.

1.7.3. Population and Sample

A population is the entire collection of all observation of the interest for the research collection
of the data from the total from the total observation is costly, confusing and timely and needs
may labor force. A sample is an efficient method of conducting research. There are 27
commercial banks operating in Nepal which is population for the study. Among them EBL
selected as appropriate sample for the study.

1.7.4. Sources of Data

Generally, there are two types of data i.e. Primary data and Secondary data. The primary and
secondary data have been collected by the researcher to cover every aspect of them.

a. Primary Data: There are data which are collected from some primary sources i.e. a
sources of origin where the data generate. These are collected for the first time by an
investigation or an agency for any statistical analysis. Primary data includes interviews,
questionnaries, informal discussions or experiments.

b. Secondary Data: These are the data which are collected by someone who is someone
other than the user. Common sources of secondary data for social science include
censuses, information collected by government departments, organizational records and
data that was originally collected for other research purposes. Data wisely and easily
available and obtained from another party/ the secondary data includes books and
publication, financial statement of banks, previous thesis, articles and journals etc. The
data used for this study are basically secondary data obtained from Everest bank limited
such as its annual report from internet websites.

1.7.5. Data collection method

The study has used descriptive research design. The data is generated from the secondary sources
of data i.e. from the annual report of the micro finance. The data of last three year’s are taken to
assets the risk and return of the Development Bank. Therefore, the major sources of secondary
data is Annual Report of Everest Bank Limited.

1.7.6. Data Analysis Tools

Data collected from various sources will be properly, analyzed and presented in appropriate
tables and formats. Such tables and formats are subjected to interpretations and explanation is
necessary. The specific financial tools and the statistical tools will be used to analyze variables.

1.8. Limitation of the study

As every research has its own limitation, this study is not biased. So this has some limitations,
which listed below:
a) This study is based on 3 year’s data only from 2077/78 to 2079/80
b) This study is based on Secondary data only.
c) Limited financial tools has been used to analyze the data.
d) This study is based on short period of time.

1.9. Organization /structure of the study

This study has been organized into three chapters, they are:

ChapterⅠ: Introduction
Chapter Ⅰ is the introduction of the study it deals with background of the study, profile of
organization, statement of problems, objectives of study, rationale of the study, method, review
of literature of study and organization of the study.

ChapterⅡ : Result and Analysis

Chapter Ⅱ is result and analysis. It deals with the presentation of results and finding with the help
of data analysis tools.

ChapterⅢ: Summary and Conclusions

Chapter Ⅲ is the summary of the study and the conclusion based on the findings of the report.