PSG Institute of Management, Coimbatore, Tamilnadu.
This research paper deals with the study on construction of portfolio with respect to Markowitz model. Four different sectors such as automobile sector, banking sector, information technology sector and pharma sector are selected through simple random sampling In each sector three different companies are selected. All the three different companies in each sector are listed in the national stock exchange and they are the top list companies. (companies are selected based on their market price as well as capitalization).
Data is collected for past 4 years for all the various companies and return, expected return, variance and standard deviation is calculated for the selected companies. After analysis and interpretation of all these companies, best company is selected in each sector and then covariance and correlation coefficient is calculated for the companies that are selected in the analysis and interpretation part. This research paper tells us. Everyone wishes to invest in companies but they don't know in which companies to invest in. Investment is secondary when compared to the selection of companies. Selecting the right companies plays a very important role for investment. Unless right companies are selected, investment cannot be useful. Hence, this research paper deals with the selection of right companies for investment.
