Published Paper Details:

The risk-return tradeoff is a core principle in portfolio management, helping investors balance potential gains against the uncertainty of outcomes. This empirical study investigates this tradeoff across four major sectors-IT, Banking, Automobile, and FMCG-using a sample of 20 stocks and 1-year current-period data. The topic was chosen in light of increasing market volatility and investor need for strategic, data-driven portfolio decisions. A descriptive research methodology was employed using secondary data from stock exchanges and financial reports. Analysis was carried out using financial tools such as Mean, Standard Deviation, Correlation Coefficient, CAPM, APT, and Portfolio Risk & Return, along with statistical tools including Descriptive Statistics, T-tests, and Correlation Analysis. The T-test yielded a p-value of 0.024, indicating a statistically significant difference between diversified and traditional portfolios in terms of performance and risk and a strong correlation (r = 0.71) between risk perception and investment behavior (H04). These findings affirm that effective portfolio management depends not only on financial metrics but also on investor psychology and sectoral positioning. The study provides valuable insights for investors aiming to make informed, balanced decisions in today's dynamic markets.