Mr. Neeraj Gupta, Faculty, Amity Business School, Gwalior & Anurag Singh Gurjar, Student (MBA II Sem), Amity Business School, Gwalior are working on a research paper –
A study of Systematic Risk with reference of Selected Companies
The objective of the study is to find out the systematic risk involved in the stock of the selected companies listed in the National Stock Exchange and to study the average return of the selected stocks. The systematic risk affects the entire market, often we read in the newspaper that the stock market is caught in a bear hug and is in bull grip. This indicates that the entire market is moving in a direction either downward or upward economic conditions. The political situation or sociological changes affect the securities market. A recession can affect the stock market all over the world. The economic crisis in the US affected the stock market worldwide. These factors are beyond the control of the corporations or the investors. They cannot be entirely avoided by the investors. This means systematic risk is unavoidable. The equity investment is the most risky investment in all the financial markets. Any investor, before investing his or her investible wealth in a stock, analyses the risk associated with it. Investors analyze the risk factor because a thorough knowledge of the risk helps them plan objectives their portfolio to minimize risk. The present study is to know about the risk of the selected stocks.
Finding will definitely be fruitful for investors in making investment decisions. The beta value of most of the company is less than one. Only the beta value of dabur is more than one .The stock of dabur is more volatile as compared to the market. The one percent change in the price of the index will cause a change of 1.213 percent change in the price of the stock of dabur. Similarly the change of one percent in the index will cause a price change of less than one percent in the stock of other companies under study.
You can read more about the study here –>
http://www.theglobaljournals.com/ijar/file.php?val=June_2014_1401711462_7354c_89.pdf