01822nam a2200157   4500999001900000008004100019100002700060245010900087260000900196300001500205520126300220773003401483906002701517942001201544952010801556  c508834d508834190412b           ||||| |||| 00| 0 eng d  aSreenu, Nenavath94348  aAn empirical test of capital asset-pricing model and three-factor model of Fama in Indian Stock exchange  c2018  ap.294-307.  aThis article aims to test the capital asset-pricing model (CAPM) and three-factor model of Fama in Indian Stock Exchange, and it has focused on the recent growth of capital markets in India and the need of practitioners in these markets to determine a stable price for securities, and achieving expected returns has brought into consideration the theories predicting price securities Among different models the CAPM of Sharp. The study uses a sample of daily data and annual average for 54 companies listed on the National Stock Exchange, during the period from 2010 to 2016. The research article’s intention is to find whether the relationship between expected return and risk is linear, if beta is a complete measure of the risk and if a higher risk is compensated by a higher expected return. The results confirm that the intercept is statistically insignificant, upholding theory, for both individual assets and portfolios. The tests do not essentially provide validation against CAPM and Fama; however, other simulations can be built, more close to reality, by improving the model and offering an alternative which also takes into account the specific conditions of the Indian capital market and the global financial crisis consequences. - Reproduced.  aManagement and Labour Studies  aStock exchange - India  2ddccAR  00102ddc40709382815aIIPAbIIPAd2019-04-12h43(4), Nov, 2018: p.294-307.pAR119331r2019-04-12yAR