EQUITY ANALYSIS:CALCULATING MEAN RETURN AND STANDARD DEVIATION OF VARIOUS SELECTED COMPANIES FROM DIFFERENT INDUSTRIES AND CORRELATING INDIVIDUAL RETURN WITH INDEX RETURN.

Authors

  • Mr.Premchand Kaila Assistant Professor Department of Management Studies Eluru College of Engineering and Technology, Andhra Pradesh, India.
  • Dr. E. Lokanadha Reddy Professor Department of Management Studies Sri Venkateswara College of Engineering & Technology (Autonomous), Andhra Pradesh, India.
  • Dr.C.Rajanikanth Associate Professor Department of Management Studies Sri Venkateswara College of Engineering & Technology (Autonomous), Andhra Pradesh, India.

Keywords:

Risk and return, Stock market, Equity, Indices, and Correlation.

Abstract

Industries are considered to be a major sector in developing economies. The fastest growing sectors have
witnessed with high competition and sustainability management, due to this industry has to look over several factors to
achieve greater market share. The risk and return analysis linked with any industry reveals the intricacies involved with
the articular industry. A close watch on these values throws light on a clear understanding and facilitates in decision
making about the investment in securities. While making the decisions regarding investment and financing, one seeks to
achieve the right balance between risk and return, in order to optimize the value of the firm. Risk and return go together
in investments. Everything an investor (be it the firm or the investor in the firm) does is tied directly or indirectly to
return and risk. The objective of any investor is to maximize expected returns from his investments, subject to various
constraints, primary risk. Return is the motivating force, inspiring the investor in the form of rewards, for undertaking
the investment. The importance of returns in any investment decision can be traced to the factors: it enables investors to
compare alternative investments in terms of what they have to offer the investor, it helps in measuring of historical
returns which enables the investors to assess how well they have done, it facilitates in measuring of the historical returns
also helps in estimation of future returns.

Published

2017-04-25

How to Cite

Mr.Premchand Kaila, Dr. E. Lokanadha Reddy, & Dr.C.Rajanikanth. (2017). EQUITY ANALYSIS:CALCULATING MEAN RETURN AND STANDARD DEVIATION OF VARIOUS SELECTED COMPANIES FROM DIFFERENT INDUSTRIES AND CORRELATING INDIVIDUAL RETURN WITH INDEX RETURN. International Journal of Advance Engineering and Research Development (IJAERD), 4(4), 633–640. Retrieved from https://ijaerd.com/index.php/IJAERD/article/view/2635