International Research journal of Management Science and Technology

  ISSN 2250 - 1959 (online) ISSN 2348 - 9367 (Print) New DOI : 10.32804/IRJMST

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RISK AND RETURN ANALYSIS

    1 Author(s):  MEENU RANI

Vol -  6, Issue- 8 ,         Page(s) : 90 - 96  (2015 ) DOI : https://doi.org/10.32804/IRJMST

Abstract

The purpose of this Article is to examine the relevance of Capital Asset Price Model (CAPM) to describe risk-return relationship on the Indian Stock Market. The Capital Asset Price Model (CAPM) was developed by building on the portfolio theory pioneered by Markowitz. Sharpe (1964), Lintner (1965) and Mossin (1967) laid the basis for the CAPM as a model of general equilibrium in the market. The model provides an equilibrium linear relationship between expected return and risk of an asset. It is a well accepted technique of evaluating the financial assets.

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