14-09-2017, 10:03 AM
Risk and return analysis plays a key role in most individual decision-making processes. Each investor wants to avoid risk and maximize return. In general, risk and return go hand in hand. If an investor wishes to earn higher returns than the investor should appreciate that this will be achieved only by accepting a proportional increase in risk. Based on risk and return analysis, the high risk gives high returns with low risk gives low return, based on this concept in Banking and Automobile the high risk sector gives low profitability and in information technology, high performance. Alpha's stock is positive and companies are independent of market performance and profitable.
Five populations of each sector have been taken for the sample. The automotive industry is considered to be one of the fastest growing sectors in any developing country and even in a developed country. As global economies are being integrated, technology companies are finding it too daunting to align with changing realities. In this scenario, the analysis of stocks in the technology sector requires the utmost prudence and understanding. When analyzing the actions of two different sectors, investors will find beneficial in which sectors to invest. Risk and performance analysis linked to any industry reveals the complexities involved with the industry in particular.
Five populations of each sector have been taken for the sample. The automotive industry is considered to be one of the fastest growing sectors in any developing country and even in a developed country. As global economies are being integrated, technology companies are finding it too daunting to align with changing realities. In this scenario, the analysis of stocks in the technology sector requires the utmost prudence and understanding. When analyzing the actions of two different sectors, investors will find beneficial in which sectors to invest. Risk and performance analysis linked to any industry reveals the complexities involved with the industry in particular.