Investment option on the basis of Risk and Return : A study of Banking Sector of Pakistan Firms Listed on Pakistan Stock Exchange (PSX), Pakistan

Abstract

This research is conducted to study the risk and return of investment in stock of Pakistani Banks. This study have eight banks which are taken as sample size and this research is based on historical data of last five years of these banks. This research measured the Average returns, variances, standard deviations, coefficient of variation, unsystematic risk and systematic risk (beta) to analyze the volatility in stocks. In this research is was found that all the selected banks have positive returns but some have high and some have low. Faysal bank is one of the risky banks in all the samples and on the same way Muslim commercial Bank is on second number according to riskiness. Meezan Bank is the bank which is less risky and have high return as compared to the others. Meezan bank have least standard deviation and have less beta as compared to other and also have reasonable average return.