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| Title | APPLIED BETA COEFICIENT OF (CAPM) TO ASSESS THE RISK AND EXPECTED RETURN OF INVESTMENT PORTFOLIO |
| Paper ID | e4aLp |
| Author(s) | Wang Yanyan(1),Guangming Gong(2), Doan Van Dinh*(3) |
| Abstract | The stock market is a plentiful, diversified and complex aggregation where buying and selling securities are often performed primarily in the Stock Exchange. Purchase and sale of shares on the market are risk factors of price volatility. The volatility of the stock price has an impact on the profits of investors. To minimize the risk of fluctuations in stock prices, the author uses the CAPM to evaluate and measure the relationship between risk and profit and make methodology. The objective of the paper is to find out the risk level and the profitability level of portfolio to choose the best investment project, maximize the profit and minimize risk. The results of this model are forecasting the rate of return for securities investment. In addition, this model also evaluates the relationship between risk and expected income and is used to value the securities that have a high degree of risk. |
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