Empirical analysis of capm and apt models in FMCG companies listed in bse stock exchange

Asset Pricing Models have been commonly used techniques in the Global Investment world for calculating the required rate of return of risky assets. Capital Asset Pricing Model and the Arbitrage Portfolio theory are the main models which are used for the asset pricing. This paper investigates the applicability of CAPM and APT model in the Indian FMCG Sector companies and tried to find out the plausible reasons of the deviations from the theories. In this study we examines the Capital Asset Pricing Model (CAPM) and APT (Arbitrage Portfolio theory) for the Indian stock market using monthly stock returns from 27 FMCG companies of BSE 500 Index listed on the Bombay stock exchange for the period of January2008 to December 2011.