Published Paper Details:

Risk is an indomitable reality which every investor should undertake to achieve returns on investment. In the equity market, risk constitutes the undiversifiable systematic risk and an avoidable unsystematic risk. There are several measures that stock analysts apply to get a better feel for a stock's risk profile. Risk-adjusted return is of how much return the investment has made in relation to the quantum of risk assumed for that investment over a given period of time. Risk measures are statistical measures that help predict investment risk. Risk-adjusted returns have a tremendous outcome on portfolios. In strong markets, stocks with lower risk than the market index can limit and have lower returns and a stock with inherent more risk than the market index may achieve enormous returns. While losses accrue in higher-risk stocks during periods of uncertainty, investors with a greater appetite for risk are can outperform their benchmarks during stable times. The article is an attempt to assess the performance of top stocks with Relative risk adjusted measures of Alpha, Information ratios, Absolute risk adjusted measures Sharpe Ratio, Treynor Ratio and certain commonly used measures as Beta, Standard Deviation, R Squared in the analysis of stocks. The paper also explicitly gives a practical explanation on the calculation of the measures and annual forecasts prices for sample included in the sample. The outcome of this paper is to create an overall understanding to the forthcoming investors on how to use these measures in practice.