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Comparative Analysis of Risk-Adjusted Performance of NSE-Listed Stocks

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Author Affiliations

  • 1 Dept of commerce, Bagalkot University Jamkhandi, Karnataka, India
  • 2 Dept of commerce, Bagalkot University Jamkhandi, Karnataka, India

Res. J. Management Sci., Volume 15, Issue (1), Pages 1-6, January,6 (2026)

Abstract

In today’s dynamic and volatile financial environment especially within emerging economies like India, evaluating the risk-adjusted performance of equity investments is crucial for sound portfolio construction and informed decision-making. In this study, 20 selected companies listed on the National Stock Exchange are evaluated using three commonly used performance evaluation metrics: Jensen's Alpha, Treynor Ratio, and Sharpe Ratio. These models present distinct perspectives on the relationship between risk and return. Treynor evaluates return in relation to market risk, Sharpe computes excess return per unit of total risk, and Jensen's Alpha determines return generated above and beyond anticipated market performance based on the Capital Asset Pricing Model. Using monthly return data over a 24-month period, the study finds that companies such as Bharat Electronics, M&M, and ICICI Bank consistently deliver superior performance across all three metrics. In contrast, firms like Asian Paints and Coal India show negative risk-adjusted returns, indicating underperformance relative to both market expectations and risk free alternatives. The results highlight the importance of using multiple evaluation tools to capture different dimensions of performance and risk exposure. This research provides valuable insights for investors, financial analysts, and portfolio managers seeking to optimize investment strategies in the Indian capital market through a more data-driven, comprehensive approach to performance evaluation.

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