A Study on Optimum Portfolio Using Abnormal Return With Special Reference to Nifty

The Indian stock market had witnessed an incredible growth in the last two years.Almost all the stocks in the nifty extremely outperformed and so is the nifty. Even the recent economic reforms like demonetisation have little impact on the stock market. Investors who were waited with patience all these times got fructified from their investments. The study had taken into consideration the 48 stocks in Nifty50 for two years from April 2015 to March 2017. This study was made an attempt to construct an optimum portfolio using the concepts of abnormal return based on CAPM. The portfolio with all scrips having positive return and the beta value almost near to market beta performs better than other portfolios