A STUDY ON RISK AND RETURN ANALYSIS USING MARKOWITZ MODEL AND SHARPE RATIO

Karishma PradeepBhai Yadav; Vivek Ayre

Volume : VIII, Issue : IV, April - 2019

A STUDY ON RISK AND RETURN ANALYSIS USING MARKOWITZ MODEL AND SHARPE RATIO

Karishma Pradeepbhai Yadav, Vivek Ayre

Abstract :

The current study investigates the study on risk and return analysis using method Markowitz model and Sharpe ratio. This empirical paper is undertaken to prove that by applying Markowitz model and Sharpe ratio an individual can construct a portfolio of selected stocks data from Banking Sectors listed in National Stock Exchange (NSE) to analyse the risk and return for the investment made by the investors. The study is based on the Descriptive Research Design to have the clear-cut data requirements; the Secondary Data have been taken for this research. The sample size taken for the construction of portfolio is 10 Banks (5 Banks from Public sector and other 5 Banks from Private sectors) from Indian Stock Market listed in NSE, time period for this study is taken 2013 to 2017 of last five years data. The results of the present study is that all the 10 banks have performed appropriately well by create an portfolio which is diversified because each security contain the 10.0 weight but after change the proportion of security, portfolio become optimum with good return at average risk.