An Empirical Examination of the CAPM on BSE SENSEX Stocks
Soumys Shetty1, Janet Jyothi D Souza2

1Soumys Shetty, Research Scholar, Department of Management Studies, Ballari Institute of Technology, Ballari (Karnataka), India.
2Dr. Janet Jyothi D Souza, Associate Professor, Department of Management Studies, Ballari Institute of Technology, Ballari (Karnataka), India.
Manuscript received on 20 September 2019 | Revised Manuscript received on 06 October 2019 | Manuscript Published on 11 October 2019 | PP: 678-685 | Volume-8 Issue-2S10 September 2019 | Retrieval Number: B11210982S1019/2019©BEIESP | DOI: 10.35940/ijrte.B1121.0982S1019
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Abstract: Investment plays a significant role in the modern economy. The investor understands the importance of investment in wealth creation. But real causing problem for investor is prediction of risk to have assured return in each company shares. It has understood that minimizing the systematic risk is always difficult than unsystematic risk. If we look in to the earlier study done by many researchers, we find that CAPM model would be right technique to know the risk and return relationship in any stock. With the point of view of significance and reliability of CAPM model, we have used CAPM techniques to conclude the results. The first model developed by William Sharpe and other scholars supporting to this model has been used to test the results. This study investigates the validity of CAPM on BSE 30 companies from BSE website. The study considered closing price of 30 companies of BSE stock market from January 2009 to December 2018.
Keywords: Investment, BSE Stock, Closing Price, Wealth Creation, CAPM Model.
Scope of the Article: Social Sciences