International Journal of Multidisciplinary Research and Development

International Journal of Multidisciplinary Research and Development


International Journal of Multidisciplinary Research and Development
International Journal of Multidisciplinary Research and Development
Vol. 7, Issue 7 (2020)

An application of CAPM: National stock exchange


Chirag Mahida

This study aims to apply Capital Assets Pricing Model in different sectors of Indian Stock Market. Capital Assets Pricing Model explain the relationship between the Risk and Return in efficient Market. The comparison between Expected Return and Estimated return was made for the total 25 companies listed in National Stock Exchange. These companies are selected from Automobile, IT, Banking and Finance, Pharmaceuticals and Energy sector. Researcher used Nifty Fifty as a benchmark index for calculating the Beta for CAPM. It has also attempted to find whether the securities are underpriced or overpriced and indicating buying signal or selling signal for the investors. Treasury bill rate was considered as Risk free rate. This study is based on secondary data which is one year closing price of the selected stocks from NSE. This paper would aid the investors for selection of the securities in their Portfolio.
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