A COMPARATIVE ANALYSIS OF LEADING COMPANIES OF THREE SECTORS (AUTOMOBILE, TELECOM AND IT SECTOR) LISTED IN NSE: USING CAPITAL ASSET PRICING MODEL
Keywords:
Expected Return, (2) Risk,, (3) Market Return, (4) Portfolio DiversificationAbstract
Return and risk are two important characteristics of every investment. Investors attempt to
reduce the level of variability of returns through diversification of investment. This research
paper shows the companies scrip behaviour with market reaction. The prime objectives of the
research paper is to know expected return, risk associated with market return, Applicability of
CAPM in five leading companies of each selective three sectors. Data collection is based on
secondary collected from website www.nseindia.com. Sample of study have compared companies
which have been listed on NSE.
The study is based on Five Leading Companies Of Three Sector (Automobile Sector, IT Sector,
Telecom Sector) that were part of the index from the beginning – 1st January, 2012 to 30 the
31st December, 2012. The Sample consists of 5 companies which are from each three sectors.
The sectors are Automobile, IT, Telecom. The study was undertaken with the objectives of
comparative testing the validity of CAPM Model for companies during the upward trends in the
Indian Stock market.
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