In this assignment, the risk and return relationship of the

selected companies are calculated and tabulated. For this purpose 10 listed
companie selected namely ABB Ltd, Abhinav, Blue Dart, Dena Bank, Force
Motors, Hinduja Global Solutions, Honey Well, Marico, Nucleus Softwares, and
Sree Global.
The following calculations are carried out to find out the
systematic and unsystematic risk, CAGR, CAPM and Beta and whether the
capital is underpriced or over priced etc. For this purpose data from BSE
Sensex is used.

Sl

Name

ABB

Code

Large/med/small

Sector

500002

Medium

Dividend
paying or
not
Yes

532057

Medium

Yes

Large

Yes

ABHINAV

BLUE DART

DENA BANK

532121

Medium

yes

FORCE
MOTORS

500033

Large

yes

HINDUJA
GLOBAL

532859

Large

Yes

HONEY WELL

57174

Medium

Yes

MARICO

531642

Medium

Yes

NUCLEUS
SOFTWARES

531209

Medium

Yes

10

SREE GLOBAL

512463

Large

Yes

526612

2009-10 details
Table No:1
Covariance Table
ABB
ABHINAV
BLUE DART
DENA BANK
FORCE MOTORS
HINDUJA GLOBAL
HONEY WELL
MARICO
NUCLEUS
SREE GLOBAL

1.95521E-05
-3.18339E-05
-4.96319E-06
4.96231E-05
2.18236E-05
2.77723E-06
-6.27597E-06
5.22144E-07
9.49789E-06
7.06405E-06

INFERENCE
In the above table the covariance value is higher for Nucleus Softwares and
lower for Honeywell.

Table No:2
Beta Table
ABB
ABHINAV
BLUE DART
DENA BANK
FORCE MOTORS
HINDUJA
HONEYWELL
MARICO
NUCLEUS
SREE GLOBAL

0.044503028

-0.01695709
-0.00913654
0.081965167
0.017526356
0.00904644
-0.01335742
0.00181341
0.014456294
0.004581502

INFERENCE
In the table above, the Beta value is higher for ABB Ltd and lower for
ABHINAV.

Table No:3
Capm
Rf

ABB

ABHINAV

BLUE DART
DENA
BANK
FORCE
MOTORS
HINDUJA
GLOBAL

HONEY
WELL

MARICO
NUCLEUS
SOFTWARE
S

beta

Rm

Rm-Rf

beta*(RmRf)

0.000439
344

4
8.314560
66

Ri
5 6=5+1
0.3700231
7.944976
26
874

8.31
5

0.016957
09

0.001877
319

8.313122
68

0.1409663
69

8.455966
369

8.31
5

0.009136
54

0.000543
224

8.314456
78

0.0759653
67

8.390965
367

8.31
5

0.081965
167

0.000605
417

8.314394
58

0.6814907
4

7.633509
26

0.001245
186

8.313754
81

0.6257227
84

7.689277
216

0.000306
997

8.314693

0.0752183
71

8.239781
629

0.000469
849

8.314530
15

0.1110606
71

8.426060
671

0.0150779
82

8.299922
018

0.1201945

8.194805
413

8.31
5

0.044503
028

8.31
5

0.075263
56

8.31
5

0.009046
44

8.31
5

0.013357
42

8.31
5

0.001813
41

0.000287
935

8.314712
07

8.31
5

0.014456
294

0.000657
007

8.314342

SREE
GLOBAL

8.31
5

0.004581
502

0.001541
863

99

87

8.313458
14

0.0380881
25

8.276911
875

INFERENCE
In the above table the values such as Rf, Ri, Beta and Ri is found out to find the
relationship between risk and return.

Table No:
Holding period 2009
Name
ABB

Dividen
t

Cl/pr

Op/pr

Rate

2000 792.2
0
5

791.
2

20791.
25

0 29.65

28.4

28.65

BLUE DART

1000 1164.
0
1

1168
.4

11163.
1

DENA BANK

2000 116.5
00
5

117.
9

20011
5.6

5000
0 918.4

919.
4

50917.
4

2000 386.6
0
5

387.
3

20385.
65

1000 2364.
00
9

2478
.5

10236
3.9

ABHINAV

FORCE
MOTORS

HINDUJA
GLOBAL

HONEY WELL

MARICO

0.36 120.3
NUCLEUS
SOFTWARES

2500
0

124

125.
4

119.66

125.
6

25123

INFERENCE
Holding period is higher for ABB ltd and lower for Marico.

Table No:
Holding period 2009,10
Name
ABB

Divide
nt

Cl/pr

2200 792.2
0
5

ABHINAV

0 47.25

Op/pr

Rate

797. 22791.
3
25
47.6
8

46.25

BLUE DART

1000
0 701.4

717. 10700.
43
4

DENA BANK

1200
0 83.25

12082.
84.5
25

7000
0 918.4

478. 70917.
3
4

1500
00 470.8

473.
4

15046
9.8

1000 2152. 2156

00
4
.3

10215
1.4

FORCE
MOTORS

HINDUJA
GLOBAL

HONEY WELL

MARICO

0.3
NUCLEUS
SOFTWARES

SHREE
GLOBAL

103

105.
6

102.3

2500 158.6
0
5

159. 25157.
3
65

418.2
0
5

4.2 417.25

Table No:
Holding period 2009,10,11
Name
ABB

Divident

Cl/pr

Op/pr

Rate

20000

586.4

587.7

20000

29.65

27.78

10000

1594.
15

1594.
8

10000

22000

48.8

49.9

22000

50000

438.2
5

437.8

50000

ABHINAV

BLUE DART

DENA BANK

FORCE
MOTORS

HINDUJA
GLOBAL

HONEY
WELL

20000
0

287.8
5

290.4

200000

10000
0

1731.
85

1734.
78

100000

0.3

145.1

147.3

0.3

193.2
5

195.8
9

MARICO

SHREE
GLOBAL

Table No:
Holding period 2009,10,11,12
Name

Divident

Cl/pr

Op/pr

Rate

ABB

30000

583.6

585.6

30000

0.3

0.03333

20.56

71098.0
2

ABHINAV

0.29

71000

2035.
9

30000

120.0
5

124.5

29999.9
6

10000
0

476.9
5

474.9

100000

20000
0

300.2

304.5

200000

BLUE DART

DENA
BANK

FORCE
MOTORS

HINDUJA

GLOBAL

HONEY
WELL

10000
0

2730.
65

5000

220.4
5

MARICO

2733.
45

100000

2.24

5097.41
5

74.65

24999.9
9

35.3

0.05382
4

NUCLEUS
SOFTWARE
S

25000
SHREE
GLOBAL

74.25

37.2

Table No:
Holding period 2009,10,11,12,13
Name

Divident

Cl/pr

Op/pr

ABB

30000

704.9

0.29

Rate

32429.6
9

ABHINAV

0 0
BLUE DART

#DIV/0!

71000

2035.
9

2063
.8

70999.9
9

47000

120.0
5

145.
87

46999.8
2

DENA
BANK

FORCE
MOTORS

30000
HINDUJA
GLOBAL
Name

ABB
HONEY
WELL
ABHINAV
MARICO
BLUE
DART
NUCLEUS
SOFTWARE
DENA
S
BANK
SHREE
FORCE
GLOBAL
MOTORS

HINDUJA
Table
No :

568.
2

29999.8
4

20000 300.2 300.

Daily
0
8
Code
Avg
Var
50000
2

0.00013 0.0004
8
39
10000 2730.
2785

532057

65

0.00725

0.75
526612

220.4
5

.8
0.0018
77

221.
4

0.00198 0.0005
2
43
30000 74.25
75.4

0.00126
2
500033

37.2

0.0006
05

38.3

0.00444
6

0.0012
45

0.00086

0.0003
07

0.00033
9

0.0004
7

0.00064
2

0.0002
88

0.00094

0.0006
57

0.00197

0.0015
42

532859

Risk And Return

HONEY
WELL

57174

MARICO

531642

NUCLEUS
SOFTWAR
ES

531209

512463

200000
99999.9
8
0.74570
9

532121

GLOBAL

SHREE
GLOBAL

476.9
5

29999.9
8
0.02872

Annual
Avg
3.46815
182.6214516
49.9459464
31.8108672
112.04676
-21.6186264
8.531082
16.174368
-23.6601036
-49.6730052

Variance
0.00697
4
0.02980
2
0.00862
3
0.00961
1
0.01976
7
0.00487
3
0.00745
9
0.00457
1
0.01043
0.02447
6