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LIMITATIONS OF THE STUDY

The study was conducted by us using only those stocks that have been listed in the

SENSEX.
Only the closing stock prices of each month have been taken for the study .The study is restricted only for 2 years due to the time constraints.

Equity Research cannot be 100% correct. Some assumptions have been made. Unpredictable market behaviour. Changing government policies. We were not provided with the details of the market portfolio and the probability of the returns from the stocks. Therefore, we could not make calculations based on the formulas and hence we used Microsoft Excel to find out the returns and other things.

SIGNIFICANCE OF THE STUDY


We collected data of the closing share prices of each month for 2 years i.e. 2009 and

2010 for two leading banks in India namely ICICI Bank (private sector bank) and SBI Bank (public sector bank). The study conducted by us helped us gain knowledge about the share markets and stock exchanges in India and how the share prices fluctuate every month. It also helped us understand the risk and returns associated with the two banks, the covariance and the correlation between the returns of the two banks which helped us in finding out the degree of similarity between the returns of the two banks. We made the following inferences from the study1. Over the past 2 years, it has been observed that the average returns from ICICI Bank have been considerably more as compared to the returns from SBI Bank. Hence, looking at this trend of the two banks it is recommended that an investor today must invest in the shares of ICICI rather than SBI as the former give more returns to the investor. 2. Standard deviation is used to measure the risk of investing in a stock of any company. In this case, the risk in investment was more for ICICI for the year 2009 as compared to SBI and in 2010 the risk involved was less for ICICI in comparison to SBI. 3. When the sign is positive, the returns are said to be positively correlated; when the sign is negative, the returns are said to be negatively correlated; and when the sign is 0, the returns are said to be uncorrelated.