This document summarizes a study on analyzing the risk and return of selected stocks. The objectives are to analyze risk and return, measure financial performance, and suggest potential stocks. Various tools are used to measure risk through standard deviation and beta values, and financial performance through ratios. Key findings include sectors like IT performing better than others, with TCS being more stable. The study helps investors pick stocks based on their risk appetite. Suggestions include watching the benchmark index, investing in consistently performing stocks, avoiding volatile stocks, and choosing high beta stocks depending on market conditions.

1. Topic
A STUDY ON RISK-RETURN ANALYSIS OF
SELECTED STOCKS
SHRIKUMAR H D
14YACMD183
PRESIDENCY COLLEGE

2. INTRADUCTION
Way2Wealth Securities (P) LTD.
 Way2Wealth is a premier Investment Consultancy Firm, launched
with the aim of making investing simpler, more understandable
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3. VISION AND MISSION STATEMENT
Vision:
 To be a leading investment company, providing
investment products & services for the Local and
International Markets.
Mission:
 To be the pre-eminent destination for personalised
helping individuals create wealth.

4. STATEMENT OF PROBLEMS
 The title of the dissertation is ―Analysis of risk and return‖. Security analysis
is built around the idea that investors are concerned with two principal
properties inherent in securities: the return that can be expected from
holding a security and the risk on that return that is achieved will be less
than the risk that was expected. The primary purpose of this dissertation is
to focus upon return and risk and how they are measured. Investors want to
maximize expected returns subjected to their tolerance for risk. Return is the
motivating force and the principle reward in the investment process and it is
the key method available to investors in comparing alternative investment.
Measuring historical return allows investors to assess how well they have
done, and it plays a part in the estimation of future unknown returns.

5. Cont…
 Making the money only the half of the battle safeguarding the hard earned
money is the top most concern for many investors. Simply investing
somewhere and waiting for the blessings of the goddess of luck doesn’t make
any sense. Proper analysis of risk and the expected return is very important
to become an efficient investor. Keeping this point in mind dissertation titled
risk and return analysis has been chosen to analyse three different
companies from finance sector. The share price and market price for six
consecutive months This study is conducted to find out how the expected
return is calculated from an investment and risk associated with that
investment by measuring beta (D) and standard deviation.

6. OBJECTIVES OF THE STUDY
 To analyse the risk and return of the selected stocks
from various sectors.
 To measure the financial performance of the stocks
selected for the study.
 To suggest potential stocks for the investors.

7. NEED FOR STUDY
 To avoid future uncertainties
 To increase the sales and profit margin
 To guide the investor
 For proper management of portfolio

8. RESEARCH DESIGN AND
METHODOLOGY
 Primary data
 Primary data is collected throw a detailed personal
interview with managers and help of other
department of the company.
 Secondary data
 Secondary data is collected from two sources
internal and external sources
 From internal sources: company documents,
reports, profiles, books, website and magazines.

9. TOOLS AND TECHNIQUES
 Risk of the stocks selected for the study is measured
by standard deviation and beta value .
 Financial performance of the companies selected for
the study measured by calculations various ratios.

10. FINDING
 The bench mark index, Nifty has given a negative return of 4.95%
 Among the steel sector JSW Steel has give moderate negative return and
it is also more stable due to low Coefficient of Variation but in terms
standard deviation Sail is preferred.
 The IT companies have performed better compared to other sectors in
terms of returns. TCS is more stable among the IT companies in terms
Coefficient of Variation and HCL Technologies has got the highest beta
value of 1.38
 The standard deviation of the cement companies is higher among the
selected companies and their performance is comparable with each
other. Ambuja Cement has given highest negative return of 1.62%.
Grasim Industries more stable with coefficient of variation of 3.68.
 Maruti Motors has given a positive return of 2.21% in the negative
market and it is very volatile with highest standard deviation of 409.77.
The TVS Motors has moderate positive return of 0.28% and it has least
coefficient of variation of 12.0.

11. SUGGESTION
 The study risk return analysis helps the investors to pick up the
securities based on their risk appetite. The study of this type
provides information about the performance of various stocks in the
market in terms of risk and return.
 The investors should always watch the bench mark index to
understand the market sentiment.
 It is advisable to invest in only those stocks who have give
consistent positive returns.
 The investors should try to avoid stocks with higher standard
deviation as they are volatile in nature.
 High beta stocks should be chosen depending upon the market
condition as they react very sharply to the market.
 The investors should regularly monitor their portfolio to keep with
the trend.
 Apart from the technical factors, the changes in the business should
be monitored to take the benefits out of it.

12. CONCLUSION
 The primary motive of the security Analysis is to analyze
the security from the view point of their price, risk and
returns. The security analysis helps to predict the
national economy, because economic activities effect the
corporate profit, investors attitude and expectation as
well as ultimately security prices. It tries to establishes
linkage between activity and stock market, because the
overall economic manifest itself in the behavior of stocks
in general .
 A stock with more systematic risk is not favorable for
investment due to the reason that it has highest market
risk, which cannot be diversified like unsystematic risk.
Thus to construct an efficient portfolio, it is better to
avoid such stocks.

13. THANK YOU