RISK AND RETURN ANALYSIS (A STUDY WITH REFERENCE ON FIVE BLUE-CHIP COMPANIES IN INDIA)

Abstract

Abstract

Risk is a fundamental concept that has to be taken into account during any financial decision making process, Any rational investor, before investing his or her investible fund 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. The risk of a stock may be caused by several factors, either common to all stocks or specific to a particular stock. Investor in general would like to analyse the risk factors. A thorough knowledge of the risk helps him to plan his portfolio in such a manner so as to minimize the risk associated with the investment.