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Comparative Study | Finance | Volume 15 Issue 5, May 2026 | Pages: 589 - 594 | India
A Study on Risk-Return Analysis of Selected Equity Stocks
Abstract: Equity investment decisions are fundamentally driven by the trade-off between risk and return, making risk return analysis an essential tool for investors. This study examines the risk?return characteristics of selected equity stocks from major sectors of the Indian economy, namely Banking, Information Technology, Fast Moving Consumer Goods (FMCG), Pharmaceuticals, Automobiles, and Metals & Mining. The selected companies for analysis are HDFC Bank (Banking), HCL Technologies (IT), Hindustan Unilever Limited (FMCG), Sun Pharmaceutical Industries Ltd. (Pharma), Mahindra & Mahindra Ltd. (Auto), and Coal India Ltd. (Metal & Mining). The study is based on secondary data collected from published sources such as stock exchange reports and financial websites. Periodic returns are calculated to evaluate performance, while risk is measured using statistical tools such as standard deviation, variance, and beta. Comparative analysis is carried out to assess the volatility and return patterns across different sectors. The relationship between risk and return is analyzed to understand whether higher risk leads to higher returns among the selected stocks. The findings of the study provide valuable insights into sector-wise investment behaviour and help investors in portfolio diversification and informed decision-making. The study concludes that sectoral performance varies significantly, and investors must consider both risk and return before making equity investment decisions.
Keywords: Risk-Return Analysis, Equity Stocks, Sectoral Analysis, Investment Decision, Portfolio Diversification, Indian Stock Market, Volatility
How to Cite?: Dr. A Chiranjeevi, Dandu Dhananjay, Neduru Sathwik, Deva Yeswanth Reddy, "A Study on Risk-Return Analysis of Selected Equity Stocks", Volume 15 Issue 5, May 2026, International Journal of Science and Research (IJSR), Pages: 589-594, https://www.ijsr.net/getabstract.php?paperid=SR26509101819, DOI: https://dx.dx.doi.org/10.21275/SR26509101819