Risk, Return and Equilibrium in Indian Capital Market Under CAPM

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Risk, Return and Equilibrium in Indian Capital Market Under CAPM

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Title: Risk, Return and Equilibrium in Indian Capital Market Under CAPM
Author: Peer Mohamed, A; Abirami Devi, K
Abstract: This paper investigates to find out if there is risk - return relationship under CAPM in Indian Stock Market. Sensex is market proxy and 91 days Treasury Bill is the risk-free rate of return. Random samples of 200 company stocks to represent the Indian Capital Market are taken for our study. Second Pass Regression Model is used. It concludes that the return is just equal to T-Bill rate. It means that, as it is proved statistically, an investor's return in Indian stock market is less than the rate of interest provided on the fixed deposits by the nationalized banks. Hence the Sharpe-Lintner 's CAPM is not relevant to Indian capital market
URI: http://hdl.handle.net/10562/775
Date: 2004-04-01

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