Analysis of Relationship between Risk and Return among Index Companies

The current research was carried out with the goals of analyzing the risk return connection as
well as the volatility patterns in the return. For the purposes of this research, three wellestablished information technology businesses, namely TCS Ltd., Wipro Ltd., and Infosys Ltd.,
as well as the IT Index, of which each of these companies is a component, were analyzed. After
converting the closing prices of the chosen firms and the IT Index to log returns, a price series
analysis was performed on the closing prices of the IT Index and the selected companies. In
order to investigate the degree of volatility present in the return series, both the standard
deviation and the GARCH model have been used. The information gathered from the most
recent four calendar years, 2019 through 2022, has been analyzed. Information was obtained
from the Bombay Stock market, which claims the title of being the oldest stock market in all of
Asia. The "More Risk, More Reward" adage does not seem to be followed by the return series
during the course of the time under review. Even though the stocks of these firms and the index
that was researched performed well throughout the time that was being studied, the return series
that was analyzed did not reveal any specific volatility pattern.