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An Empirical Examination of the CAPM on BSE SENSEX Stocks

2019; Volume: 8; Issue: 2S10 Linguagem: Inglês

10.35940/ijrte.b1121.0982s1019

2277-3878

Soumys Shetty, Janet Jyothi, Diogo O. Souza,

Stock Market Forecasting Methods

Investment plays a significant role in the modern economy. The investor understands the importance of investment in wealth creation. But real causing problem for investor is prediction of risk to have assured return in each company shares. It has understood that minimizing the systematic risk is always difficult than unsystematic risk. If we look in to the earlier study done by many researchers, we find that CAPM model would be right technique to know the risk and return relationship in any stock. With the point of view of significance and reliability of CAPM model, we have used CAPM techniques to conclude the results. The first model developed by William Sharpe and other scholars supporting to this model has been used to test the results. This study investigates the validity of CAPM on BSE 30 companies from BSE website. The study considered closing price of 30 companies of BSE stock market from January 2009 to December 2018.