Volume : V, Issue : IV, April - 2016

Circular Indicator on Measuring Risk of Returns of Sri Lankan Share Market

W. G. S. Konarasinghe

Abstract :

<p> Statistical modeling is vital in planning, forecasting and management of capital markets. Investments in capital markets are considered as high risk and high return. But investors concern for low risk and high return. Hence forecasting risk and return is essential for share markets. In general, risk of returns is measured by standard deviation or β coefficient of Capital Asset Pricing Model, but both methods are erroneous. This study suggested a new approach for measuring risk of returns. The theory of uniform circular motion of a particle in a horizontal circle was applied in measuring the risk. Suggested risk measurement, named as “Circular Indicator” was tested on Sri Lankan stock market. Result revealed that the method is successful in measuring risk of returns. Circular Indicator may applicable for the data, follows wave like patterns in the fields; Medicine, Agriculture, Meteorology or any other.</p>

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Article: Download PDF    DOI : https://www.doi.org/10.36106/gjra  

Cite This Article:

W.G. S. Konarasinghe Circular Indicator on Measuring Risk of Returns of Sri Lankan Share Market Global Journal For Research Analysis, Vol.5, Issue : 4 APRIL 2016


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