Stock Analysis and portfolio construction a study on NIFTY to stocks

Abstract

This study outlines a logical framework for selecting individual stocks listed on the SE, focusing on risk-return coherence through detailed volatility analysis and constructing an optimal pottfolio under specific scenarios. Analyzing the risk-return features ofstocks alongside indices helps i11vestors gain insights into market dynamics and create portfolios that balance potential profits with acceptable risk levels. The study is grounded in modem portfolio theory, the capital asset pricing model and other key performance ratios, offering guidance for investment decisions.