Risk Return Analysis of Equity Stocks: A Study of Selected Indian IT Companies

1.Disouza, J., Ravinarayan K.S. (2018). An Empirical Study on Risk and Return Analysis of Mining Sector . International Journal of Management Studies, 5 (4-5), 111-118. 2.Fabinu, I. B., Makinde, K. O., & Folorunso, A. O. Empirical analysis of capital assets pricing model (CAPM) as a tool for valua

14 Pages Posted: 28 Jan 2021

Date Written: June 15, 2018

Abstract

The present study is an attempt to diagnose the risk return profile of equity stocks of selected Indian IT companies listed on IT Index of NSE. The risk return profile of selected IT companies has been examined on various parameters including the absolute return, abnormal return, required rate of return as per CAPM model, volatility of return, systematic risk and risk adjusted return. Authors found that Tata Elxsi, Infibeam Avenues and NIIT technologies have offered highest rate of return. The returns of Infibeam avenues, Tata Elxsi and Mindtree are highly volatile. The risk adjusted return is highest in case of Mindtree and Tech Mahindra. Stocks prices of Infosys, HCL technologies and Tech Mahindra are highly sensitive to market movement indicating the highest degree of systematic risk. Except HCL Technologies, Wipro and Oracle Fin Serv, remaining seven IT companies have offered higher rate of return than the minimum required rate of return.

Keywords: Abnormal Return, Systematic Risk, Required Rate of Return, Risk

JEL Classification: G19

Suggested Citation

Bantwa, Ashok and Ansari, Faizan Ulhaqq, Risk Return Analysis of Equity Stocks: A Study of Selected Indian IT Companies (June 15, 2018). 1.Disouza, J., Ravinarayan K.S. (2018). An Empirical Study on Risk and Return Analysis of Mining Sector . International Journal of Management Studies, 5 (4-5), 111-118. 2.Fabinu, I. B., Makinde, K. O., & Folorunso, A. O. Empirical analysis of capital assets pricing model (CAPM) as a tool for valua, Available at SSRN: https://ssrn.com/abstract=3732792

Ashok Bantwa (Contact Author)

GLS University ( email )

Ahmedabad
India

Faizan Ulhaqq Ansari

GLS University ( email )

Law Garden
Ahmedabad
India

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