Risk and return analysis of equity shares project pdf

Posted on Friday, June 4, 2021 7:35:25 PM Posted by Cira N. - 04.06.2021 and pdf, and pdf 5 Comments

risk and return analysis of equity shares project pdf

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risk return analysis

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Log In Sign Up. Download Free PDF. Nupur Gupta. Download PDF. A short summary of this paper. Aisha Begum Reg. The results embodied in the project have not been submitted to any other University or Institution for the award of any Degree or Diploma. Mohammed Akbar Manager and Mr. Vasiuddin proprietor of Franchise Ventura Securities Limited for guiding me and helping me in successful completion of the project I am very much thankful to our Mr. Ravindra Chary Internal Guide sir for extending his cooperation in doing this project.

I am also thankful to our project coordinator Mr. Ravindra Chary for extending his cooperation in completion of Project. I convey my thanks to my beloved parents and my faculty who helped me directly or indirectly in bringing this project successfully. Return expresses the amount which an investor actually earned on an investment during a certain period. Return includes the interest, dividend and capital gains; while risk represents the uncertainty associated with a particular task.

The risk and return trade off says that the potential return rises with an increase in risk. It is important for an investor to decide on a balance between the desire for the lowest possible risk and highest possible return. But when the return is higher, the risk is also higher. Return and risk go together and they have a tradeoff. The art of investment is to see that return is maximized with minimum risk. Combination of securities with different risk-return characteristics will constitute the portfolio of the investor.

It also includes the calculation of individual standard deviations which helps in allocating the funds available for investment based on risky portfolios. To study the fluctuations in share prices of selected companies. To study the risk involved in the securities of selected companies. To study the systematic risk involved in the selected companies securities. To offer some suggestions to the investors. The data is collected from secondary sources such as various websites, journals, newspapers, books, etc.

In Equity market, risk is analyzed and trading decisions are taken on basis of technical analysis. It is collection of share prices of selected companies for a period of five years. This is the study of Risk-Return analysis for a period of five years Money market is mainly for the short-term needs and capital market for long term needs.

Whereas the secondary market deals with buying and selling of old, second hand, existing securities, which are already listed in official trading list of recognized stock exchange. NSE was set up by leading institutions to provide a modern, fully automated screen-based trading system with national reach.

It has set up facilities that serve as a model for the securities industry in terms of systems, practices and procedures. NSE has played a catalytic role in reforming the Indian securities market in terms of microstructure, market practices and trading volumes. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November as a tax-paying company unlike other stock exchanges in the country.

The Capital Market Equities segment commenced operations in November and operations in Derivatives segment commenced in June The standards set by NSE in terms of market practices and technology has become industry benchmarks and is being emulated by other market participants. NSE is more than a mere market facilitator.

It's that force which is guiding the industry towards new horizons and greater opportunities. The initials of the Exchange viz. The logo symbolizes use of state of the art information technology and satellite connectivity to bring about the change within the securities industry.

The logo symbolizes vibrancy and unleashing of creative energy to constantly bring about change through innovation. Though the impetus for its establishment came from policy makers in the country, it has been set up as a public limited company, owned by the leading institutional investors in the country.

From day one, NSE has adopted the form of a demutualised exchange - the ownership, management and trading is in the hands of three different sets of people. NSE is owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries and is managed by professionals, who do not directly or indirectly trade on the Exchange. This has completely eliminated any conflict of interest and helped NSE in aggressively pursuing policies and practices within a public interest framework.

The NSE model however, does not preclude, but in fact accommodates involvement, support and contribution of trading members in a variety of ways.

Its Board comprises of senior executives from promoter institutions, eminent professionals in the fields of law, economics, accountancy, finance, taxation, etc, public representatives, nominees of SEBI and one full time executive of the Exchange. While the Board deals with broad policy issues, decisions relating to market operations are delegated by the Board to various committees constituted by it.

Such committees include representatives from trading members, professionals, the public and the management. The day-to-day management of the Exchange is delegated to the Managing Director who is supported by a team of professional staff.

These committees are manned by industry professionals, trading members, Exchange staff as also representatives from the market regulator. It is the first stock exchange in the country to obtain permanent recognition in from the Government of India under the Securities Contracts Regulation Act, The Exchange's pivotal and pre-eminent role in the development of the Indian capital market is widely recognized and its index, SENSEX, is tracked worldwide. With demutualization, the trading rights and ownership rights have been de-linked effectively addressing concerns regarding perceived and real conflicts of interest.

The Exchange is professionally managed under the overall direction of the Board of Directors. The Board comprises eminent professionals, representatives of Trading Members and the Managing Director of the Exchange. The Board is inclusive and is designed to benefit from the participation of market intermediaries. In terms of organization structure, the Board formulates larger policy issues and exercises over-all control. The committees constituted by the Board are broad-based.

The day-to-day operations of the Exchange are managed by the Managing Director and a management team of professionals. The Exchange has a nation-wide reach with a presence in cities and towns of India.

The systems and processes of the Exchange are designed to safeguard market integrity and enhance transparency in operations. During the year , the trading volumes on the Exchange showed robust growth. The Exchange provides an efficient and transparent market for trading in equity, debt instruments and derivatives.

In fact the first venues of the earliest stock broker meetings in the s were amidst rather natural environs - under banyan trees - in front of the Town Hall, where Horniman Circle is now situated. A decade later, the brokers moved their venue to another set of foliage, this time under banyan trees at the junction of Meadows Street and Mahatma Gandhi Road. As the number of brokers increased, they had to shift from place to place, and wherever they went, through sheer habit, they overflowed in to the streets.

At last, in , found a permanent place, and one that they could, quite literally, call their own. The new place was, aptly, called Dalal Street. It also laid down best practices adopted by the Indian Capital Markets after India gained its Independence. At par with international standards, BSE has been a pioneer in several areas. It has several firsts to its credit even in an intensely competitive environment.

BSE, which had introduced securities trading in India, replaced its open outcry system of trading in , when the totally automated trading through the BSE Online trading BOLT system was put into practice. The BOLT network was expanded, nationwide, in It was the listing ceremony of Bharti Tele ventures Ltd.

BSE with its long history of capital market development is fully geared to continue its contributions to further the growth of the securities markets of the country, thus helping India increase its sphere of influence in international financial markets. A lot has changed since when persons became members of what today is called "Bombay Stock Exchange Limited" by paying a princely amount of Re1.

Since then, the stock market in the country has passed through both good and bad periods. The journey in the 20th century has not been an easy one. Till the decade of eighties, there was no measure or scale that could precisely measure the various ups and downs in the Indian stock market.

The index is widely reported in both domestic and international markets through print as well as electronic media. The "Market Capitalization-Weighted" methodology is a widely followed index construction methodology on which majority of global equity benchmarks are based. The growth of equity markets in India has been phenomenal in the decade gone by. Right from early nineties the stock market witnessed heightened activity in terms of various bull and bear runs.

More recently, the bourses in India witnessed a similar frenzy in the 'TMT' sectors. It comprised of stocks listed at five major stock exchanges in India at Mumbai, Calcutta, Delhi, Ahmedabad and Madras. With a view to provide a better representation of the increased number of companies listed, increased market capitalization and the new industry groups, the Exchange constructed and launched on 27th May, , two new index series viz.

Since then, BSE has come a long way in attuning itself to the varied needs of investors and market participants. In order to fulfill the need of the market participants for still broader, segment-specific and sector-specific indices, the Exchange has continuously been increasing the range of its indices.

The committee frames the broad policy guidelines for the development and maintenance of all BSE indices. The Index Cell of the Exchange carries out the day to day maintenance of all indices and conducts research on development of new indices. A company intending to have its securities listed on the Exchange has to comply with the listing requirements prescribed by the Exchange.

Some of the requirements are as under: - 1.

Investment

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India's teledensity has. Telecom sector has continued to emerge as the prime engine of economic growth, contributing to nearly 2. Various policy initiatives and policy reforms the Indian telecom sector has achieved a phenomenal growth during the last few years. Today India has the world's second-largest mobile phone users with over This project speaks from an investors perspective; keeping the Risk-Return Analysis and Financial Analysis as the criteria the project analysis as to whether an industry like the telecom service sector is suitable for investment.

risk return analysis

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Cost of capital

In economics and accounting , the cost of capital is the cost of a company's funds both debt and equity , or, from an investor's point of view "the required rate of return on a portfolio company's existing securities". It is the minimum return that investors expect for providing capital to the company, thus setting a benchmark that a new project has to meet. For an investment to be worthwhile, the expected return on capital has to be higher than the cost of capital. Given a number of competing investment opportunities, investors are expected to put their capital to work in order to maximize the return. In other words, the cost of capital is the rate of return that capital could be expected to earn in the best alternative investment of equivalent risk; this is the opportunity cost of capital. If a project is of similar risk to a company's average business activities it is reasonable to use the company's average cost of capital as a basis for the evaluation or cost of capital is a firm's cost of raising funds. However, for projects outside the core business of the company, the current cost of capital may not be the appropriate yardstick to use, as the risks of the businesses are not the same.

In other words, to invest means owning an asset or an item with the goal of generating income from the investment or the appreciation of your investment which is an increase in the value of the asset over a period of time. When you invest it always requires a sacrifice of some present asset that you own today such as time, money, or effort. In finance , the benefit from an investing is when you receive a return on your investment.

What is Return? Nyberg, P. Portfolios have their own risks and returns. Explain how understanding risk and return will help you in future business ventures. Lenders will look closely at a company to determine how risky they believe the company is and will base their decision to lend to that company on that level of risk.


The present study in this context is relevant in explaining the parity between risk and return in the Indian equity market. It will definitely help the stakeholders to take.


Analysis of Risk Return Relationship in Indian Stock Market.pdf

COMMENT 5

  • Working capital management book pdf working capital management book pdf Niamh R. - 08.06.2021 at 09:30
  • PDF | Stock market is a market where a number of securities are 20+ million members; + million publications; k+ research projects Risk Return Analysis of Equity Stocks:A Study of Selected Indian IT Companies. Imogen R. - 08.06.2021 at 10:26
  • Solution manual of introduction to real analysis bartle sherbert 4th edition pdf questions for the most dangerous game pdf Uwe M. - 09.06.2021 at 06:54
  • The higher the risk undertaken, the more ample the expected return — and conversely, the lower the risk, the more modest the expected return. Palmira Z. - 09.06.2021 at 10:14
  • Project report on "A Study on Risk and. Return Analysis of Equity Stocks, at Pattern Effects Labs Pvt. Ltd,. Bangalore". 1s prepared by him under the guidance of. Zahir Z. - 14.06.2021 at 15:08

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