Published Paper Details:

Indian securities market is a highly volatile and sensitive market where portfolio construction is highly important to get good returns. Risk and recovery relationships are an important part of investing in decision-making. Although studies have examined the risks and relationships of relapses, the investor remains willing to invest in a high-yield and low-risk financial institution; and it is very necessary to create a portfolio that meets the goals and objectives of investors. The investor is trying to make a high profit with minimal risk. The main focus of this research is to construct an optimal portfolio with the help of CAPM. In this research, banks and companies has been taken into consideration for constructing the optimum portfolio. Eight banks and companies like HDFC Bank, ICICI Bank, Infosys, L&T, Reliance Insurance, Bharthi Airtel, NTPC and Housing Development Finance Corporation Ltd been selected and excess to beta ratio has been calculated and ranked the companies based on that ratio. The cut-off point was calculated based on the highest value and cut-off point should be used to calculate the proportion of money to be invested in each stocks. This research findings and suggestions would be helpful to investors for investing in banks and companies.