Paper Contents
Abstract
This study investigates the risk and return profiles of the top five companies listed on the BSE SensexReliance Industries Ltd., Tata Consultancy Services, HDFC Bank, Infosys, and Hindustan Unilever Ltd.for the period from January 2022 to December 2023. The primary objective is to evaluate the relationship between risk and return, offering insights to investors for informed decision-making. Key financial metrics such as the Sharpe ratio, Treynor ratio, and Jensens alpha were employed to assess risk-adjusted performance.The findings reveal significant differences in the risk-return dynamics across these companies. TCS and HDFC emerged as strong performers in terms of risk-adjusted returns, while Reliance and Infosys demonstrated higher volatility and underperformance relative to market benchmarks. The study highlights the importance of considering risk-adjusted metrics rather than just absolute returns for more accurate assessments of investment performance.Ultimately, the study suggests that investors should adopt a diversified portfolio strategy, focusing on long-term returns and market conditions. Recommendations include balancing high-growth, volatile stocks with more stable investments to optimize risk management.
Copyright
Copyright © 2024 PRATHIMA K S. This is an open access article distributed under the Creative Commons Attribution License.
