Portfolio evaluation of select IT (Information Technology) companies – An empirical study

Finance deals with creating a proper framework to maximize profits at a given level of risk. Risk is the “effect of uncertainty on objectives”. Individual securities have risk-return characteristics of their own. The present research paper highlights the relationship between risk & return, portfolio risk, portfolio return of the 4 companies i.e. Wipro, Infosys, TCS, HCL from 2010–11 to 2013–14 and it evaluates the efficient portfolio that offers maximum return for minimum risk. For the study secondary data has been used which is collected from books, websites, journals. Statistical tools i.e. Mean, Standard deviation, Covariance, Correlation have been used to measure the portfolio risk & portfolio return of 4 companies. From the study it was found that Portfolio return of HCL & TCS is more with relation to other companies whereas portfolio risk of Wipro & Infosys is very low in comparison with other companies.