EQUITY ANALYSIS

Ⅰ.INTRODUCTION

Equity analysis is an ex-ante evaluation of different investment avenues, the

main aim is to evaluate investment worthiness of the equity shares that is to find
out the risk and return of investment in such share. In financial terms, return is
the amount which an investor actually earned on an investment during a certain
period and risk is the chance or likelihood that a firm savings may or may not
distribute the real/probable returns. The relationship of risk and return is an
underlying concept in financial analysis and also in every aspect of life. If the
Individuals or stockholders want to maximize their benefit, they must consider
the combined influence of return or benefit as well as risk or cost on investment.
A research has been carried out to study, the equity shares of sampled
companies of IT Industry in Indian stock market and provide a clear view on
how to navigate through the stock market with a view to make moderate profits
with moderate risk factor, governing the investments made by the investor. The
IT industry in India is the fifth-largest in the world and considered to be a fastest
growing sector. Since, the demand for ITs nowadays is directly connected to
overall economic growth and personal incomes, industry growth will low if the
economy weakens.

India is a developing country. Nowadays many people are interested to invest in

financial markets especially on equities to get high returns, and to save tax in
honest way. Equities are playing a major role in contribution of capital to the
business from the beginning. Since the introduction of shares concept, large
numbers of investors are showing interest to invest in stock market .In an
industry plagued with skepticism and a stock market increasingly difficult to
predict and contend with, if one looks hard enough there may still be a genuine
aid for the Day Trader and Short Term Investor. The price of a security
represents a consensus. It is the price at which one person agrees to buy and
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another agrees to sell. If prices are based on investor expectations, then knowing
what a security should sell for (i.e., fundamental analysis) becomes less
important than knowing what other investors expect it to sell for. That's not to
say that knowing what asecurity should sell for isn't important--it is. But there is
usually a fairly strong consensus of a stock's future earnings that the average
investor cannot disprove Fundamental analysis and technical analysis can co-
exist in peace and complement each o t h e r . Since all the investors in the stock
market want to make the maximum profits possible, they just cannot afford to
ignore either fundamental or technical analysis This session discusses the trade-
off and, using conventional statistical tools, provides a method for quantifying
risk. Two categories of risk borne by the firm's stockholders, business risk and
financial risk, are discussed and demonstrated, as is the concept of leverage. The
session also examines risk reduction via portfolio diversification and what
requirements need to be met for firms to experience the benefits of
diversification. This is used to demonstrate the risk/return trade-off by relating
the required return on the firm's investments to its beta (or market) risk

To start any business capital plays major role. Capital can be acquired in two
ways by issuing shares or by taking debt from financial institutions or
borrowing money from financial institutions. The owners of the company have
to pay regular interest and principal amount at end. Stock is ownership in a
company, with each other each share of stock representing a tiny piece of
ownership. The more shares you, the more dividends you earn when the
company makes a profit In the financial world, ownership is called “Equity”.

Stock/shares play a major role in acquiring capital to the business in return

investors are paid dividends to the shares they own. The more shares you own
the more dividends you receive. The Role of equity analysis is to provide
information to the market. An efficient market relies on information: a lack of
information creates inefficiencies that result in stocks being misrepresented

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(over or under valued). This is valuable because it fills information gaps so that
each individual investor does not need to analyze every stock thereby making
the markets more efficient

Stock/shares play a major role in acquiring capital to the business in return

investors are paid dividends to the shares they own. The more shares you own
the more dividends you receive. The role of equity analysis is to provide
information to the market. An efficient market relies on information: a lack of
information creates inefficiencies that result in stocks being misrepresented
(over or under valued). This is valuable because it fills information gaps so that
each individual investor does not need to analyze every stock thereby making
the markets more efficient.

The risk/return relationship is a fundamental concept in not only financial

analysis, but in every aspect of life. If decisions are to lead to benefit
maximization, it is necessary that individuals/institutions consider the combined
influence on expected (future) return or benefit as well as on risk/cost. The
requirement that expected return/benefit be commensurate with risk/cost is
known as the "risk/return trade-off" in finance.

Ⅱ. THEOTERICAL BACKGROUND :

Important Learning Terms :

• Risk
• Systematic risk
• Unsystematic risk
• Return

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• Portfolio
• Beta
• Leverage
• Diversification

The one thing that almost all investors would agree upon is the fact that equity
is definitely more risky than debt. Irrational exuberance with a rising market has
left many an investor losing their shirts and in some cases even more sensitive
garments. However, does this mean that investing in debt instruments is entirely
risk-free? Unfortunately, the answer is in the negative though the volatility is
much less. So first, let us examine what kind of risks do debt instruments pose,
Interest rate and prices of fixed income instruments share an inverse
relationship. In other words, when the overall interest rates in the economy rise,
the prices of fixed income earning instruments fall and vice versa. Interest rates
in the economy may fluctuate due to several factors such as a change in the
RBI's monetary policy, Cash Reserve Ratio (CRR) requirements, forex reserves,
the level of the fiscal deficit and the consequent inflation outlook etc.
Extraneous factors such as energy price fluctuations, commodity demand and
supply and even capital flows may result in rates fluctuating. Then there are the
event-based factors that affect interest rates. For example, the 11/9 episode in
the United States of America and 13/12 in India.
If there is a war, interest rates will rise. However, typically such events are
temporary in nature and in fact a good fund manager can actually take
advantage of such hiccups.
This is the risk inherent in a particular asset class. The best way to combat this
risk is by diversification. However, one must remember that the diversification
must be in the class of asset and not the asset itself.

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NEED FOR STUDY :
▪ The accentuated growth rate of the IT Industry in recent times has turned
the head winds for the many major economies of the world. India being
instrumental in supplying the human capital to the IT industry studying IT
stocks movements is the need of the hour.
▪ Further as the growth of IT industry accelerated the need of the firms for
more capital also raised thus many firms lined up for additional funds and
capital markets being instrumental channels for funds the study is of at
most importance keeping the Industry’s growth rate in view.
▪ Investors being key players in the stock market who focuses on
improving their return margins with minimal risk , the study is of prime
importance as the major objective of the study is to analyse the riskreturn
relationship of stock pertaining to IT Industry.

OBJECTIVES OF THE STUDY:

o To study the detailed analysis of banking industry this is gearing
towards international standards
o To analyze the various risks and returns patterns in shares.
o To compare the three tough competitors TCS, Wipro, Infosys
o To know the risk involved with invests in equities
o To Suggest as to which company’s shares would be best for an
investor to invest.
o To also deeply analyze our Indian Pharma Industry or investment
purpose by monitoring the growth rate and performance on the
basis of historical data,of past analysis.
o To gain knowledge of the concept of risk return analysis

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 o To identify and examine the risk and return relationship of selected
IT companies in Indian stock market.
o To provide valid suggestions for the stockholders, in order to take a
rational choice while investing in IT stocks.
o To find and compare the performance of the selected IT companies
in share market.

SCOPE OF THE STUDY :

• The scope of the study is identified after and during the study is conducted.
• The analysis is made by taking into consideration Five companies in Pharma
Sector.
• The scope of the study is limited for a period of five years.
• The scope is limited to only the fundamental analysis of the chosen stocks.
• The analysis is made by taking into consideration three companies i.e. TCS,
Wipro, Infosys.
• The scope is limited to only the fundamental analysis of the chosen stocks.
• The study's includes India's IT industry specific stocks only.
• The study focused on only few Indian IT firms.
• The duration of the study includes April 2018-March 2022.
• The project's focus is on learning the fundamentals of technical and
fundamental analysis and applying them to make investment decisions in the IT
sector.
• The scope of the study is limited for a period of three months.
• The scope is limited to only the fundamental analysis of the chosen stocks.
• To have a higher return, the investor should be able to accept the fact that he
has to be faced with greater risk.

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LIMITATIONS OF THE STUDY :
➢ The study focused on the market with the historical information.
➢ While applying the tools transaction cost, impact cost etc, is not taken into
consideration. Therefore, it will reflect on the return calculated.
➢ Tools used for the analysis have their own limitations which may have an
impact on the study
➢ This study has been conducted purely to understand Equity analysis for
investors.
➢ The study is limited to the companies having equities.
➢ Detailed study of the topic was not possible due to limited size of the project.
➢ There was a constraint with regard to time allocation for the research study
i.e. for a period of 45 days.

REASEARCH METHODOLOGY:
✓ Source of data : Data is collected from the primary data and secondary
data.
✓ Primary Data: primary data means which is collected personally and
observations, for this project there is no primary data.
✓ Secondary data: The data which is represented already. The present study
is based on Secondary data.
Ⅲ. DIFFERENT COMPANIES INFORMATION:
1. WIPRO LTD.
2. INFOSYS LTD.
3. TCS LTD.
4. HCL LTD.
5. TECH MAHINDA LTD .
6. L&T LTD .
7. MPHASIS LTD .
8.ORACLE COMPANY LTD.

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 S. No Name of the Company Return

Daily Monthly

1 WIPRO LTD 2.9% 6.3%

2 INFOSYS LTD. 51.7% 47.3%

3 TCS LTD. -86.5% -87.0%

4 HCL LTD. -1.3% 0.6%

5 TECH MAHINDA LTD. -33.5% -40.2%

6 L&T LTD. 84.2% 80.8%

7 MPHASIS LTD. -20.5% -26.1%

8 ORACLE COMPANY LTD. 80.3% 82.9%

Table No:1.1 Tabular representation of IT Companies returns during 2018-

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Source: Author’s Compilation

S. No Name of the Company Standard Deviation

Daily Monthly
1 WIPRO LTD 2.827% 12.487%
2 INFOSYS LTD. 1.673% 8.029%
3 TCS LTD. 3.340% 15.115%
4 HCL LTD. 1.926% 8.559%
5 TECH MAHINDA LTD. 2.521% 12.052%
6 L&T LTD. 1.956% 9.171%
7 MPHASIS LTD. 2.965% 16.578%
8 ORACLE COMPANY LTD. 2.117% 9.398%

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 Table No:1.2 Tabular representation of Standard Deviations of IT
Companies returns during 2018-19 Source: Author’s Compilation

Standard Deviation Daily

Standard Deviation
Monthly

Graph No:1.a Graphical representation of Standard Deviations of IT

Companies returns during

From the analysis, standard deviation is calculated for the monthly standard
deviation. Standard deviation measures the companies based on daily and
monthly prices for a period of 5 risk of an investment.

years, Infosys has lowest standard

deviation and Mphasis has the
highest daily standard deviation
and TCS has the highest

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 S. No Name of the Company P-VALUE
Nifty IT Nifty 50
1 WIPRO LTD 0.83 0.82
2 INFOSYS LTD. 0.60 0.78
3 TCS LTD. 0.53 0.35
4 HCL LTD. 0.78 0.37
5 TECH MAHINDA LTD. 0.68 0.39
6 L&T LTD. 0.19 0.81
7 MPHASIS LTD. 0.96 0.64
8 ORACLE COMPANY LTD. 0.37 0.83
Table No:1.3 Tabular representation of t-test results of IT Companies
returns during 2018-19

From the analysis, the p-value is calculated using t-test, the pvalues of the
companies return with respect to both nifty IT index return and nifty 50 index
return are more than the level of significance (0.05), hence the null hypothesis
H0 is accepted in both cases. Therefore, there is no significant relationship
between stock returns and NIFTY-50 returns and no significant relationship
between stock returns and NIFTY IT returns.

➢ During the study period, the daily mean return and monthly mean return
of all the selected companies in the IT sector is positive except for
MPHASIS and L&T. Among all the companies, ORACLE
(0.025%,0.887%) has the highest daily and monthly return.

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 ➢ In terms of variance, standard deviation INFOSYS has the lowest risk and
MPHASIS and MPHASIS has the highest risk element. As per coefficient
of variation TCS and TECHMAHINDRA (daily prices) has the lowest risk
per unit of return and TECH MAHINDRA(monthly prices), MPHASIS
have the highest risk per unit of return.
➢ The correlation coefficient between the daily and monthly return of
selected IT companies with the return of NIFTY IT index and NIFTY 50
index is highest for L&T and TCS has the lowest correlation.

➢ INFOSYS has the lowest systematic risk (beta) and MPHASIS has highest
systematic risk. TCS has the lowest Alpha value and ORACLE has highest
Alpha value.

Ⅳ. DATA ANALYSIS & INTERPRETATION:

CALCULATIONS OF RETURNS OF TCS LTD FOR THREE

MONTHS (MAY,JUNE,JULY)

Date Open Price Close Price Return (X)

02-May-21 2399.7 2350 2.11
03-May-21 2341 2304.05 1.6
06-May-21 2294 2319.45 -1.1
07-May-21 2320 2330.55 -0.45
08-May-21 2337.9 2277.05 2.67
09-May-21 2280.45 2283.2 -0.12
10-May-21 2180 2169.85 0.47
13-May-21 2204.8 2155.45 2.29
14-May-21 2147.05 2101.15 2.18
15-May-21 2116.9 2121.3 -0.21

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16-May-21 2145.1 2189.6 -2.03
17-May-21 2185 2137.2 2.24
20-May-21 2142 2125.1 0.8
21-May-21 2126.2 2132.9 -0.31
22-May-21 2132 2135 -0.14
23-May-21 2149 2156.35 -0.34
24-May-21 2154.9 2188.45 -1.53
27-May-21 2212 2300.35 -3.84
28-May-21 2294 2282.6 0.5
29-May-21 2275 2259.85 0.67
30-May-21 2265 2276.05 -0.49
31-May-21 2277 2263.45 0.6
03-Jun-21 2258 2221.85 1.63
04-Jun-21 2229 2186 1.97
06-Jun-21 2190 2182.35 0.35
07-Jun-21 2182.2 2154.55 1.28
10-Jun-21 2160.5 2195.75 -1.61
11-Jun-21 2205 2195.25 0.44
12-Jun-21 2194.8 2208.2 -0.61
13-Jun-21 2218 2200.3 0.8
14-Jun-21 2214 2207.6 0.29
17-Jun-21 2202 2259.3 -2.54
18-Jun-21 2277 2282.65 -0.25
19-Jun-21 2280 2288.9 -0.39
20-Jun-21 2292 2339.3 -2.02
21-Jun-21 2343.8 2313.6 1.31
24-Jun-21 2306 2307.7 -0.07
25-Jun-21 2300 2288.1 0.52
26-Jun-21 2266 2293.1 -1.18
27-Jun-21 2281.5 2323.4 -1.8
28-Jun-21 2326.7 2313.4 0.57
01-Jul-21 2303 2351.7 -2.07

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 02-Jul-21 2354.9 2365.55 -0.45
03-Jul-21 2366.6 2361.35 0.22
04-Jul-21 2361.25 2368.25 -0.3
05-Jul-21 2369.7 2379.5 -0.41
08-Jul-21 2384 2334.4 2.12
09-Jul-21 2321 2281.4 1.74
10-Jul-21 2275 2303.7 -1.25
11-Jul-21 2304 2315.35 -0.49
12-Jul-21 2315 2324.4 -0.4
15-Jul-21 2324.4 2344.35 -0.85
16-Jul-21 2348 2249.3 4.39
17-Jul-21 2250 2258.55 -0.38
18-Jul-21 2254.9 2278.75 -1.05
19-Jul-21 2278 2295.1 -0.75
22-Jul-21 2295 2291 0.17
23-Jul-21 2287 2285.35 0.07
24-Jul-21 2265 2306.7 -1.81
25-Jul-21 2304 2318.35 -0.62
26-Jul-21 2322.6 2353 -1.29
29-Jul-21 2345.05 2357.8 -0.54
30-Jul-21 2341 2332.9 0.35
31-Jul-21 2320 2229.8 4.05
Total 4.73
Average Return 0.07

❖ Return = Close price - Open price x 100

Open Price

CALCULATION OF RISK OF TCS LTD FOR THREE MONTHS

(MAY,JUNE,JULY)

Return Avg Return D = X - Ex D x D =D2

(X) (Ex)

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2.11 0.07 2.04 4.18
1.60 0.07 1.53 2.35
-1.10 0.07 -1.17 1.36
-0.45 0.07 -0.52 0.27
2.67 0.07 2.60 6.77
-0.12 0.07 -0.19 0.04
0.47 0.07 0.40 0.16
2.29 0.07 2.22 4.93
2.18 0.07 2.11 4.47
-0.21 0.07 -0.28 0.08
-2.03 0.07 -2.10 4.42
2.24 0.07 2.17 4.69
0.80 0.07 0.73 0.53
-0.31 0.07 -0.38 0.15
-0.14 0.07 -0.21 0.04
-0.34 0.07 -0.41 0.17
-1.53 0.07 -1.60 2.57
-3.84 0.07 -3.91 15.29
0.50 0.07 0.43 0.18
0.67 0.07 0.60 0.36
-0.49 0.07 -0.56 0.31
0.60 0.07 0.53 0.28
1.63 0.07 1.56 2.42
1.97 0.07 1.90 3.60
0.35 0.07 0.28 0.08
1.28 0.07 1.21 1.47
-1.61 0.07 -1.68 2.81
0.44 0.07 0.37 0.14
-0.61 0.07 -0.68 0.46
0.80 0.07 0.73 0.54
0.29 0.07 0.22 0.05
-2.54 0.07 -2.61 6.79

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-0.25 0.07 -0.32 0.10
-0.39 0.07 -0.46 0.21
-2.02 0.07 -2.09 4.38
1.31 0.07 1.24 1.53
-0.07 0.07 -0.14 0.02
0.52 0.07 0.45 0.20
-1.18 0.07 -1.25 1.57
-1.80 0.07 -1.87 3.51

0.57 0.07 0.50 0.25

-2.07 0.07 -2.14 4.58

-0.45 0.07 -0.52 0.27

0.22 0.07 0.15 0.02

-0.30 0.07 -0.37 0.13

-0.41 0.07 -0.48 0.23

2.12 0.07 2.05 4.22

1.74 0.07 1.67 2.77

-1.25 0.07 -1.32 1.73

-0.49 0.07 -0.56 0.31

-0.40 0.07 -0.47 0.23

-0.85 0.07 -0.92 0.85

4.39 0.07 4.32 18.65

-0.38 0.07 -0.45 0.20

-1.05 0.07 -1.12 1.25

-0.75 0.07 -0.82 0.66

0.17 0.07 0.10 0.01

0.07 0.07 0.00 0.00

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 -1.81 0.07 -1.88 3.53

-0.62 0.07 -0.69 0.47

-1.29 0.07 -1.36 1.85

-0.54 0.07 -0.61 0.37

0.35 0.07 0.28 0.08

4.05 0.07 3.98 15.80

4.73 Total 141.97

❖ S.D. (⌐) = √∑d2/N

S.D = √141.97/64
S.D. = √2.22 S.D. = 1.49

INTERPRETATION:

The above table shows return & risk associated with the price
movement of TCS for a month of May, June, July . It has an average return of
0.07 that is 7% and risk is 1.49.

FINDINGS:

1. We can state that Infosys & TCS has good returns, where as other

companies showing negative returns. The risks associated with these

companies are very high .
2. The return associated with the price movement of Tech Mahindra for a

month of May, June, July . It has an average return of -0.05 that is -5%.
3. The risk associated with the price movement of Tech Mahindra s 1.82 .

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4. The return associated with the price movement of HCL Technologies for

a month of May, June, July 2021. It has an average return of -0.19 that is
-19% .
5. The risk associated with the price movement of HCL is 1.51.

6. The return associated with the price movement of Infosys for a month of

May, June, July 2021. It has an average return of 0.20 that is 20%.
7. The risk associated with the price movement of Infosys is 1.38 .

8. The return associated with the price movement of Wipro for a month of

May, June, July 2021. It has an average return of -0.02 that is -2% .
9. The risk associated with the price movement of Wipro is 1.24.

10. The return associated with the price movement of TCS for a month of

May, June, July 2021. It has an average return of 0.07 that is 7%.
11. The risk associated with the price movement of TCS is 1.49.

12. The daily mean return and monthly mean return of all the selected

companies in the IT sector is positive except for MPHASIS and L&T.

13. Among all the companies, ORACLE (0.025%,0.887%) has the highest

daily and monthly return.

14. In terms of variance, standard deviation INFOSYS has the lowest risk

and MPHASIS and MPHASIS has the highest risk element. As per
coefficient of variation TCS and TECHMAHINDRA (daily prices) has
the lowest risk per unit of return and TECH MAHINDRA(monthly
prices), MPHASIS have the highest risk per unit of return.
15. The correlation coefficient between the daily and monthly return of

selected IT companies with the return of NIFTY IT index and NIFTY 50

index is highest for L&T and TCS has the lowest correlation.

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 16. INFOSYS has the lowest systematic risk (beta) and MPHASIS has

highest systematic risk. TCS has the lowest Alpha value and ORACLE
has highest Alpha.

SUGGESTIONS:

✓ To have a higher return, the investor should be able to accept the fact that
he has to be faced with greater risk.
✓ Though high risk leads to high returns, there may be certain cases where
more returns cannot be generated. This may be due to volatility of the
market or some other factors.
✓ If an investor wants to take risk he can invest in Infosys because reason is
the risk is more and at the same time, it is yielding high returns.
✓ Understanding and measuring return and risk in fundamental to the
investment process and increases an awareness of the investment
problem.
✓ Infosys & TCS has good returns, where as other companies showing
negative returns. The risks associated with these companies are very high.
✓ The reverse will be the case if the investor is risk averse. That means a
risk averse investor invests only in those securities which are having
minimal risk and he is satisfied with the normal returns. Here, in the
study, if an investor is risk averse person, then he will be interested to
invest in TCS & Infosys.
✓ In some cases, there will be investors who are in a position to face
moderate risk. Such kind of people would like to invest in Axis.
✓ IT sector achieves the highest continuous output. Investing in the IT
sector offers a high return for long-term investments. Hence, it is
suggested that long-term investments in this sector would bring the
maximum return.

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✓ It is recommended to shareholders that their investment horizon is not
geared towards a long-term investment horizon, but rather depends on
their goals and the type of investment opportunity. Instead of making
wrong investment decisions, shareholders are encouraged to seek the help
of a financial planner.
✓ It is recommended that you avoid investing in the final movement and
plan the investment at the beginning of the year.
✓ The returns of various investments are now based on the market scenario,
so it is advisable for shareholders who continue to be aware of new
guidelines and to improve condition changes, they need to know not only
the investment channels they have invested in, but also the general
investment routes so that they can make the diversification necessary to
keep your portfolio profitable.
✓ Unit holders are advised to invest in suitable speculation avenue which is
appropriate for them while making investment.
✓ Understanding and measuring return and risk in fundamental to the
investment process and increases an awareness of the investment
problem.
✓ To have a higher return, the investor should be able to accept the fact that
he has to be faced with greater risk.
✓ Though high risk leads to high returns, there may be certain cases where
more returns cannot be generated. This may be due to volatility of the
market or some other factors.
✓ If an investor wants to take risk he can invest in BIOCON because reason
is the risk is more and at the same time, it is yielding high returns.
✓ The reverse will be the case if the investor is risk aversor. That means a
risk adverse investor invests only in those securities which are having
minimal risk and he is satisfied with the normal returns. Here, in the

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 study, if an investor is risk adverse person, then he will be interested to
invest in Cipla.
✓ In some cases, there will be investors who are in a position to face
moderate risk. Such kind of people would like to invest in Lupin.

Ⅴ. SUMMARY& CONCLUSION :
The goal of maximizing returns can only be pursued at the expense of
risk inclusion. When selecting the company to invest in, the investor must
consider both the potential return and the associated risk. Empirical
evidence shows that there is generally a high correlation between risk and
risk. In the recent past the market has reached great heights due to
business expansion and especially globalization, and the higher
proportion of FDI has a direct impact on the demand and supply of a
company's shares from peaking. With the market boom, there are many
shareholders willing to take more risks. The financial sector is booming
and the need for risk and return analysis is growing. Due to the very
complicated behaviour of the stock market, it has become mandatory to
manage the portfolio in order to reduce risk and maximize returns.
Requirements, the portfolio should be developed and reviewed regularly.
The analysis of the test of the relationship between risk and return in
stocks shows that all the different risk variables considered in the study
confirm the effectiveness of the risk and return compensation in stocks.
Correlation of stock market performance and average return over the
study period. It also discusses the relationship between the systematic risk
and return of stocks. Any rational investor, before investing his or her
investible wealth in the stock, analyses the risk associated with the
particular stock. The actual return he receives from a stock may vary from
his expected return and the risk is expressed in terms of variability of
return. Investors in general would like to analyze the risk helps him to

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plan his portfolio in such a manner so as to minimize the risk associated
with the investment. The study equity analysis of pharmaceutical sector
started with the objectives specifications, to study the detailed analysis of
Pharma industry this is gearing towards international standards To
analyze the various risks and returns patterns in shares From the
calculations in the study it can beconcluded that the banking sector in the
best sector for the investment with minimum risk and maximum return,
every individual can do this simple calculations to understand the risk and
return involved in the each securities. Any rational investor, before
investing his or her investible wealth in the stock, analyses the risk
associated with the particular stock. The actual return he receives from a
stock may vary from his expected return and the risk is expressed in
terms of variability of return. Investors in general would like to analyze
the risk helps him to plan his portfolio in such a manner so as to minimize
the risk associated with the investment.

REFERENCES:
➢ Harry Markowitz, Kenneth Blay: Risk-Return Analysis: The
Theory and Practice of Rational Investing.
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BIBLIOGRAPHY:

Books: The following books are referred to study Equities.

• Financial Management - I.M. Panday.

• Indian financial system - M.Y. Khan.
• Capital market book published by - India Info line .

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WEBSITES:

❖ w.w.w nseindia.com.
❖ w.w.w moneycontrol.com.
❖ w.w.w capitalmarket.com.
❖ w.w.w capitalline.com.
❖ w.w.w investopedia.com.
❖ w.w.w.google.com.
❖ w.w.w.google.com.

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