Construction of Optimal Portfolio Using Sharpe’S Single index Model: An Empirical Study on Indian Computer Software Industry Stocks
Journal Title: International Journal of Management, IT and Engineering - Year 2017, Vol 7, Issue 12
Abstract
Indian IT services companies are establishing their presence in all major global markets. Accordingly the primary concern of this research is to build an optimal portfolio from Indian Computer Software Industry with the assistance of Sharpe index model. NSE listed top 28 computer software securities on basis of market capitalization have been selected for the present research. Present study covers five years time period from October 1, 2012 to October 1, 2017. Nineteen companies have been selected on the basis of Cut-off point. An investor is getting 2.569172% of Portfolio Return on an average by constructing Portfolio of NSE 19 Computer Software securities, and against it he is bearing 6% Portfolio Risk. All the selected securities except Ramco Ltd and Sasken Tech Ltd are having beta less than 1, so we can say that they are stable earning securities with low level of risk.It is believed that present study would prove useful to investors for putting their resources optimally into Indian Computer Software Industry and to choose which companies would give most elevated return at low risk.
Authors and Affiliations
Dr. Rupinder Katoch
Keywords
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