Capm

Subject: Investment & Portfolio Management

Class: MSc. (Accounting and Finance)

Semester: 3rd

Session: 2012-2014

Department: Department of commerce

Dated: .

INTRODUCTION TO THE REPORT

Students of MSc.(Accounting and Finance) studying course of Investment & Portfolio Management. The purpose of this report is to study and analyze CAPM model, in investing the any type of securities. The written report is a requirement to learn how CAPM model are working in practical business area.

Objective of Study:

The purpose of the study is to work in a real life situation and to apply CAPM model. In this context its objectives are:

1. To review Capital Asset Pricing Model.

2. To analyze different working areas where CAPM use.

3. To analyze the strengths and weaknesses Capital Asset Pricing Model.

4. To suggest possible solution and assumption of Capital Asset Pricing Model.

5. To do practical work in stock exchange data and apply the knowledge of classroom lectures to the real life situations.

6. To suggest concrete and feasible recommendations.

Merits of the Study:

The study conducted will benefit the Investment students in particular investment in share, bonds and securities because report comprehensively encompasses most of the aspects of Investment(Risk and Return), followed by Capital Asset Pricing Model and their conclusion. Further more Capital Asset Pricing Model practical study help students in sensible investment.

Methodology of the Study:

The report is prepared using both primary and secondary data .

1 Primary data

2 Secondary Data

“It is not the return on my investment that I am concerned about.It is the return of my investment!”

– Will Rogers

CAPM Model

(Capital Assets Pricing Model)

CAPM Model Introduction:

The capital asset pricing model, almost always referred to as the CAPM, is a center piece of modern financial economics. The model gives us a precise prediction of the relationship...