A Study on Risk and Return Analysis of Selected Stocks in India

Risk and return analysis plays a key role in most individual decision making process. Every investor wants to avoid risk and maximize return. In general, risk and return go hand. If an investor wishes to earn higher returns than the investor must appreciate that this will only be achieved by accepting a commensurate increase in risk. Based on risk and return analysis, high risk gives high returns with low risk gives to low return, based on this concept in Banking and Automobile sector high risk gives low return, and in Information technology, Fast moving consumer goods, Pharmaceutical sector low risk gives high return. Alpha stock is positive and the companies are independent to market return and have a profitable return.