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

Related Articles

slugQuality OF WEB SITES – A STUDY ON SOME STANDARD INDIAN UNIVERSITIES

The main objective of this study is to investigate the websites of some standard Indian universities and their accessibility and utility to various users. Thus the main investigation is to analyze various characteristi...

Corporate Social Responsibility with SocioEconomic Development

Corporate Social Responsibility (CSR) is an important issue in contemporary business, management and politics, especially since the launch of the United Nations Global Compact in 2000 as an initiative to encourage busi...

SUSTAINABILITY OF FINANCIAL INSTITUTIONS: EVIDENCE FROM INFORMATION TECHNOLOGY AND SERVICE DELIVERY IN COOPERATIVE BANKS

The use of Information technology in banks is paramount for service delivery and sustainability of cooperative banks in particular. The current study sought examine the effect of IT on operation of Zigama Credit and Sa...

AN EXPLANATORY STUDY ON THE ROLE OF EMPLOYEE’S TEAM WORK TOWARDS ORGANISATIONAL SUCCESS (WITH SPECIAL REFERENCE TO ASSOSA UNIVERSITY, ETHIOPIA)

Team work refers to “process of working jointly with group of people to attain their individual or organisational goals”. Team work begins with moulding the minds of team members to work together, to cooperate with ea...

slugPsychological aspects of male and female investors towards money matters

Financial sector is the backbone of any healthy nation. In finance theories it is assumed that people behave rationally and predictably when it is economic/financial matter. In several recent studies it is found that m...

Download PDF file
  • EP ID EP18971
  • DOI -
  • Views 343
  • Downloads 8

How To Cite

Dr. Rupinder Katoch (2017). Construction of Optimal Portfolio Using Sharpe’S Single index Model: An Empirical Study on Indian Computer Software Industry Stocks. International Journal of Management, IT and Engineering, 7(12), -. https://europub.co.uk/articles/-A-18971