Browsing by Author "Shanthi, S.R.D."

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    Analysis of Risk and Return Relationship A Case on Listed Manufacturing Companies in Sri Lanka
    (Uva Wellassa University of Sri Lanka, 2013) Shanthi, S.R.D.
    The relationship between risk and return is an essential aspect in all human decision making. The aim of investors is getting investment opportunities with minimum risk and maximum returns. Risk and returns are important variables that investors are looking for, at the time of investment decision making (Hasanali S.at.al, 2010). Hence, the research investigates as main objective, to find out relationship between systematic risk and expected return. With that purpose, CAPM is applied to find risk and return relationship. Listed manufacturing companies are selected as research population. There are 37 listed manufacturing companies in Sri Lanka. The final sample consists with 27 manufacturing companies and other 10 companies are eliminated since, lack of data in sample period of 2001 to 2011. Other than identification of risk and return relationship, there are two secondary objectives; to identify the relationship between systematic risk and market performance of listed manufacturing companies in Sri Lanka and to identify the degree of risk and proposed investors for listed manufacturing companies in Sri Lanka. Sharpe ratio, Jensen's alpha and Treynor ratio is used for measure company performances. Through secondary data research was conducted and to achieve primary objective of risk and return relationship and correlation analysis is used. Morkover, to analyze systematic risk and market performancg same method was applied correlation analysis). According to systematic risk value, the degree of risk and proposed investors are determined. Regressing All Share Price return and company return the systematic risk was calculated.