A STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCKS IN INDIA

Abstract

Portfolio refers to a combination of securities such as stocks, bonds and money market 
instruments, Diversifying one’s investment helps to spread the risk over many assets. Portfolio 
construction is the process of combining the broad asset classes to yield optimum returns with 
minimum risk. Construction an investment portfolio depends to a significant degree on the 
nature of the investor. Understanding market instruments and market movements can help one 
to understand the market. The significance of this study is of understanding the application of 
Markowitz model in analyzing the risk and returns of the stocks and also how to use the 
analysis in the construction of an optimal portfolio for the investments. The study aims at 
guiding the investors with an investments opportunity that reaps them the maximum returns 
with minimum volatility.