There is an alternative to estimating risk premiums that does not requ

The advantage of this implied ERP is that it is market driven and current and it does not require any
for the valuation is th

GENERIC INDEX
YEAR - 2019
level of the NIFTY 10741.35
current dividend yield 0.0134
expected growth rate in earnings for next 5 years for market 0.08
current long term bond rate 0.0655
risk premium 0.0491
expected growth rate in the long term 0.0655

Intrinsic Value Estimate

1 2
Expected Dividends = 155.4488172 167.8847226
Expected Terminal Value =
Present Value = 139.4660122 135.1366348
Intrinsic Value of Index = 3323.196018
Implied Risk Premium
Implied Risk Premium in current level of Index = return on equity - risk free rate 4.42%

1 2
Expected Dividends = 155.4488172 167.8847226
Expected Terminal Value =
Present Value = 140.0818394 136.3326904
Intrinsic Value of Index = 3693.510607
 Implied equity risk premium
s that does not require historical data or corrections for country risk, but does assume that the overall stock m
does not require any historical data. Thus, it can be used to estimate implied equity risk premium in any mark
r the valuation is the right one and the availability reliability of the inputs in the model.

3 4 5
181.3155004 195.8207404 211.4863996
4589.38409
130.9416523 126.8768926 2790.774826

3 4 5
181.3155004 195.8207404 211.4863996
5098.161964
132.6838836 129.1327335 3155.27946
risk premium
rrections for country risk, but does assume that the overall stock market is correctly priced.
can be used to estimate implied equity risk premium in any market. It is, however, bounded by whether the
lability reliability of the inputs in the model.

INDUSTRY SPECIFIC INDEX

YEAR - 2019
level of the NIFTY IT 15632
current dividend yield 0.029
expected growth rate in earnings for next 5 years for market 0.08
current long term bond rate 0.0655
risk premium 0.0491
expected growth rate in the long term 0.0655

Intrinsic Value Estimate

1 2
Expected Dividends = 489.59424 528.7617792
Expected Terminal Value =
Present Value = 439.2555536 425.6199514
Intrinsic Value of Index = 10466.58095
Implied Risk Premium
Implied Risk Premium in current level of Index = return on equity - risk free rate 3.30%

1 2
Expected Dividends = 489.59424 528.7617792
Expected Terminal Value =
Present Value = 441.1951338 429.3869916
Intrinsic Value of Index = 15556.90783
d.
ed by whether the model used

3 4 5
571.0627215 616.7477393 666.0875584
14454.507
412.4076328 399.605458 8789.692354

3 4 5
571.0627215 616.7477393 666.0875584
21506.55435
417.8948823 406.7103477 13861.72047
 Date Open Adj Close TCS Return NIFTY Open NIFTY Adj Close NIFTY return
8/1/2014 1288.5 1092.338 7662.5 7954.350098
9/1/2014 1262.5 1184.757 0.08460736 7990.350098 7964.799805 0.00131371
10/1/2014 1374.5 1126.935 -0.0488056 7960.5 8322.200195 0.044872489
11/1/2014 1322.5 1148.244 0.01890867 8348.150391 8588.25 0.031968686
12/1/2014 1321.5 1109.84 -0.0334457 8605.099609 8282.700195 -0.03557766
1/1/2015 1277.18 1077.822 -0.0288488 8288.700195 8808.900391 0.06353003
2/1/2015 1241.05 1161.863 0.0779731 8802.5 8844.599609 0.00405263
3/1/2015 1337.55 1110.962 -0.0438104 8953.849609 8491 -0.03997915
4/1/2015 1282.5 1075.885 -0.0315736 8483.700195 8181.5 -0.03645036
5/1/2015 1233.32 1138.676 0.05836279 8230.049805 8433.650391 0.03081958
6/1/2015 1305.12 2226.406 0.95525874 8417.25 8368.5 -0.00772505
7/1/2015 1282.5 1115.339 -0.4990408 8376.25 8532.849609 0.019639076
8/1/2015 1254.95 1144.806 0.0264197 8510.650391 7948.950195 -0.06842959
9/1/2015 1283.5 1154.829 0.00875537 7907.950195 7948.899902 -6.327E-06
10/1/2015 1300 2253.382 0.95126929 7992.049805 8065.799805 0.014706425
11/1/2015 1248.5 1064.803 -0.5274643 8054.549805 7935.25 -0.0161856
12/1/2015 1182.5 1098.099 0.03126964 7958.149902 7946.350098 0.001398834
1/1/2016 1216.05 1076.49 -0.0196787 7924.549805 7563.549805 -0.0481731
2/1/2016 1196 987.0331 -0.0831008 7589.5 6987.049805 -0.07622082
3/1/2016 1091.25 1138.198 0.15315062 7038.25 7738.399902 0.10753467
4/1/2016 1252.53 1144.531 0.00556439 7718.049805 7849.799805 0.014395728
5/1/2016 1265.03 1164.906 0.01780183 7822.700195 8160.100098 0.039529708
6/1/2016 1288.95 1153.914 -0.0094363 8179.200195 8287.75 0.015643178
7/1/2016 1276.55 1209.39 0.04807667 8313.049805 8638.5 0.042321499
8/1/2016 1310 1166.477 -0.0354832 8654.299805 8786.200195 0.017097898
9/1/2016 1264.5 1126.848 -0.0339734 8793.599609 8611.150391 -0.01992327
10/1/2016 1220 1113.867 -0.0115193 8666.150391 8638 0.003118005
11/1/2016 1197 1062.693 -0.045943 8653.150391 8224.5 -0.04786988
12/1/2016 1145 1102.452 0.03741313 8244 8185.799805 -0.00470548
1/1/2017 1182.5 1040.821 -0.0559032 8210.099609 8561.299805 0.045872121
2/1/2017 1112.18 1157.836 0.11242534 8570.349609 8879.599609 0.037178911
3/1/2017 1242 1141.218 -0.014352 8904.400391 9173.75 0.033126538
4/1/2017 1217.5 1066.579 -0.0654027 9220.599609 9304.049805 0.014203549
5/1/2017 1136.05 1194.385 0.11982772 9339.849609 9621.25 0.034092702
6/1/2017 1265 1109.889 -0.0707446 9603.549805 9520.900391 -0.01043
7/1/2017 1182 1197.219 0.07868351 9587.950195 10077.099609 0.058418762
8/1/2017 1247.03 1205.289 0.00674088 10101.049805 9917.900391 -0.01579812
9/1/2017 1237.5 1176.44 -0.0239352 9937.650391 9788.599609 -0.01303711
10/1/2017 1218.5 1262.996 0.07357431 9893.299805 10335.299805 0.055850706
11/1/2017 1311 1278.593 0.01234895 10390.349609 10226.549805 -0.01052219
12/1/2017 1318.5 1310.705 0.02511554 10263.700195 10530.700195 0.029741252
1/1/2018 1344.9 1510.369 0.15233283 10477.549805 11027.700195 0.047195342
2/1/2018 1560 2963.419 0.96204993 11044.549805 10492.849609 -0.04850065
3/1/2018 1520.5 1389.561 -0.5310952 10479.950195 10113.700195 -0.03613407
4/1/2018 1422.5 1722.211 0.2393921 10151.650391 10739.349609 0.061861574
5/1/2018 1765.7 1701.826 -0.0118366 10783.849609 10736.150391 -0.0002979
6/1/2018 1758 1816.68 0.06748875 10738.450195 10714.299805 -0.00203523
7/1/2018 1829.95 1909.177 0.05091496 10732.349609 11356.5 0.059938606
8/1/2018 1951 2047.983 0.07270472 11359.799805 11680.5 0.028529917
 9/1/2018 2080.05 2152.737 0.0511501 11751.799805 10930.450195 -0.06421384
10/1/2018 2186 1909.427 -0.1130236 10930.900391 10386.599609 -0.04975555
11/1/2018 1940.1 1946.04 0.01917456 10441.700195 10876.75 0.04719065
12/1/2018 1980.1 1869.95 -0.0390997 10930.700195 10862.549805 -0.00130555
1/1/2019 1905 1989.491 0.06392751 10868.849609 10830.950195 -0.00290904
2/1/2019 2005 1963.72 -0.0129538 10851.349609 10792.5 -0.00355003
3/1/2019 1990 1979.703 0.00813916 10842.650391 11623.900391 0.077035014
4/1/2019 2010 2231.619 0.12724941 11665.200195 11748.150391 0.010689183
5/1/2019 2254.95 2174.12 -0.0257654 11725.549805 11922.799805 0.01486612
6/1/2019 2207.8 2204.206 0.01383799 11953.75 11788.849609 -0.01123479
7/1/2019 2239.65 2200.26 -0.0017903 11839.900391 11118 -0.05690543
8/1/2019 2206 2214.9 0.00665393 11060.200195 10741.349609 -0.03387753
CAPM Parameters

Beta 0.4454862659
R-square 0.004817235
Intercept 0.0361067988

Jensen alpha = Intercept - Rf(1-beta)

Jensen alpha = -0.2744208924

SUMMARY OUTPUT OF REGRESSION

Regression Statistics
Multiple R 0.0694063039
R Square 0.004817235
Adjusted R Square -0.0123410885
Standard Error 0.2523895035
Observations 60

ANOVA
df SS MS F Significance F
Regression 1 0.017884 0.0178840371 0.280752 0.5982312797
Residual 58 3.694627 0.0637004615
Total 59 3.712511

Coefficients Standard Error t Stat P-value Lower 95%

Intercept 0.0361067988 0.032942 1.0960702584 0.277578 -0.0298338741
X Variable 1 0.4454862659 0.840762 0.5298604346 0.598231 -1.2374807743
 1.2
1
0.8
0.6
0.4
0.2
0
0 10 20 30 40 50 60 70
-0.2
-0.4
-0.6
-0.8
TCS Return NIFTY return

regression
1.2
1
0.8
0.6
0.4
0.2
0
-0.1 -0.05 0 0.05 0.1 0.15
-0.2
-0.4
-0.6
-0.8

Upper 95% Lower 95.0% Upper 95.0%

0.1020474716 -0.029833874 0.1020474716
2.128453306 -1.237480774 2.128453306
 Date Open Adj Close INFY Return NIFTY Open NIFTY Adj Close NIFTY return
8/1/2014 418.75 322.217865 7662.5 7954.350098
9/1/2014 451.256 335.554291 0.041389468 7990.350098 7964.799805 0.00131371
10/1/2014 465.25 362.727692 0.0809806393 7960.5 8322.200195 0.044872489
11/1/2014 509.612 415.828064 0.1463918338 8348.150391 8588.25 0.031968686
12/1/2014 548.375 376.271088 -0.095128202 8605.099609 8282.700195 -0.03557766
1/1/2015 492.237 408.574829 0.0858523071 8288.700195 8808.900391 0.06353003
2/1/2015 535.375 432.200043 0.0578234691 8802.5 8844.599609 0.00405263
3/1/2015 575.75 423.158356 -0.020920144 8953.849609 8491 -0.03997915
4/1/2015 549.725 370.49057 -0.124463538 8483.700195 8181.5 -0.03645036
5/1/2015 485.562 385.923248 0.041654712 8230.049805 8433.650391 0.03081958
6/1/2015 508.2 375.536346 -0.026914424 8417.25 8368.5 -0.00772505
7/1/2015 494.5 450.14447 0.1986708472 8376.25 8532.849609 0.019639076
8/1/2015 539 457.395752 0.0161087884 8510.650391 7948.950195 -0.06842959
9/1/2015 545 485.627808 0.0617234766 7907.950195 7948.899902 -6.327E-06
10/1/2015 584.95 474.552246 -0.022806688 7992.049805 8065.799805 0.014706425
11/1/2015 565 463.119812 -0.024090991 8054.549805 7935.25 -0.0161856
12/1/2015 544 470.56958 0.016086049 7958.149902 7946.350098 0.001398834
1/1/2016 550 495.898804 0.0538267348 7924.549805 7563.549805 -0.0481731
2/1/2016 585 461.480927 -0.069405041 7589.5 6987.049805 -0.07622082
3/1/2016 547.4 518.631287 0.1238412178 7038.25 7738.399902 0.10753467
4/1/2016 608 514.289001 -0.008372588 7718.049805 7849.799805 0.014395728
5/1/2016 605 531.55127 0.0335653085 7822.700195 8160.100098 0.039529708
6/1/2016 623.025 498.4104 -0.062347457 8179.200195 8287.75 0.015643178
7/1/2016 590 467.909576 -0.061196203 8313.049805 8638.5 0.042321499
8/1/2016 535.75 451.351837 -0.035386621 8654.299805 8786.200195 0.017097898
9/1/2016 519 451.438995 0.0001931043 8793.599609 8611.150391 -0.01992327
10/1/2016 517.75 434.641541 -0.037208691 8666.150391 8638 0.003118005
11/1/2016 503.4 434.293915 -0.000799799 8653.150391 8224.5 -0.04786988
12/1/2016 488 449.89743 0.0359284679 8244 8185.799805 -0.00470548
1/1/2017 505.55 413.392792 -0.081139912 8210.099609 8561.299805 0.045872121
2/1/2017 460.55 450.698792 0.0902434699 8570.349609 8879.599609 0.037178911
3/1/2017 506 455.083801 0.009729356 8904.400391 9173.75 0.033126538
4/1/2017 516.075 409.096863 -0.101051582 9220.599609 9304.049805 0.014203549
5/1/2017 459.475 434.9617 0.0632242369 9339.849609 9621.25 0.034092702
6/1/2017 484.65 416.486816 -0.042474737 9603.549805 9520.900391 -0.01043
7/1/2017 470.55 464.179474 0.1145118073 9587.950195 10077.099609 0.058418762
8/1/2017 505.5 419.99707 -0.095183881 10101.04981 9917.900391 -0.01579812
9/1/2017 457.975 413.088562 -0.016448943 9937.650391 9788.599609 -0.01303711
10/1/2017 449.95 423.164459 0.0243916146 9893.299805 10335.299805 0.055850706
11/1/2017 462.5 460.756195 0.088834814 10390.34961 10226.549805 -0.01052219
12/1/2017 489.7 491.887146 0.0675649103 10263.7002 10530.700195 0.029741252
1/1/2018 518.85 542.961609 0.1038337013 10477.54981 11027.700195 0.047195342
2/1/2018 571.1 553.511658 0.0194305616 11044.54981 10492.849609 -0.04850065
3/1/2018 584.8 534.252563 -0.03479438 10479.9502 10113.700195 -0.03613407
4/1/2018 570.5 566.209412 0.0598159957 10151.65039 10739.349609 0.061861574
5/1/2018 599.75 581.45636 0.0269281077 10783.84961 10736.150391 -0.0002979
 6/1/2018 615.2 617.047974 0.0612111526 10738.4502 10714.299805 -0.00203523
7/1/2018 657 665.792114 0.0789957054 10732.34961 11356.5 0.059938606
8/1/2018 681.9 702.859131 0.0556735597 11359.79981 11680.5 0.028529917
9/1/2018 724.5 712.125854 0.0131843247 11751.79981 10930.450195 -0.06421384
10/1/2018 737.5 669.547546 -0.059790426 10930.90039 10386.599609 -0.04975555
11/1/2018 689.7 658.152832 -0.017018529 10441.7002 10876.75 0.04719065
12/1/2018 673.15 649.77124 -0.012735024 10930.7002 10862.549805 -0.00130555
1/1/2019 660.95 739.109192 0.1374913916 10868.84961 10830.950195 -0.00290904
2/1/2019 751.35 724.071594 -0.02034557 10851.34961 10792.5 -0.00355003
3/1/2019 735.5 733.488586 0.0130056089 10842.65039 11623.900391 0.077035014
4/1/2019 742 740.884094 0.0100826491 11665.2002 11748.150391 0.010689183
5/1/2019 751.35 727.473572 -0.018100702 11725.54981 11922.799805 0.01486612
6/1/2019 729.8 721.80365 -0.00779399 11953.75 11788.849609 -0.01123479
7/1/2019 735 793.650024 0.0995372827 11839.90039 11118 -0.05690543
8/1/2019 786.45 795.700012 0.0025829874 11060.2002 10741.349609 -0.03387753
CAPM Parameters

Intercept 0.0136429132 0.25

R- square 0.139494967
0.2
Beta 0.6353458479
0.15
0.1
Jensen alpha = Intercept - Rf(1-beta)
Jensen alpha -0.1905634119 0.05
0
1 4 7 10 13 16 19 22 25 28 3
-0.05
-0.1
-0.15
INFY Return

Regressi
SUMMARY OUTPUT REGRESSION 0.25
0.2
regression analysis 0.15
Multiple R 0.3734902502 0.1
R Square 0.139494967 0.05
Adjusted R Square 0.1246586734 0
-0.1 -0.05 0
Standard Error 0.0622002455 -0.05
Observations 60 -0.1
-0.15
ANOVA
df SS MS F Significance F
Regression 1 0.0363761988 0.036376 9.4022786359 0.0032889286
Residual 58 0.2243944911 0.003869
Total 59 0.2607706899

Coefficients Standard Error t Stat P-value Lower 95%

Intercept 0.0136429132 0.0081184179 1.680489 0.0982408722 -0.0026078658
X Variable 1 0.6353458479 0.2072018542 3.066314 0.0032889286 0.2205862737
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61

INFY Return NIFTY return

Regression
0.25
0.2
0.15
0.1
0.05
0
-0.05 0 0.05 0.1 0.15
-0.05
-0.1
-0.15

Upper 95% Lower 95.0% Upper 95.0%

0.0298936922 -0.0026078658 0.0298936922
1.0501054222 0.2205862737 1.0501054222
 Date Open Adj Close TCS Return Open Adj Close Nifty IT return
8/1/2014 1288.5 1092.337646 7662.5 7954.350098
9/1/2014 1262.5 1184.757446 0.08460736 7990.350098 7964.799805 0.00131371
10/1/2014 1374.5 1126.934692 -0.04880556 7960.5 8322.200195 0.044872489
11/1/2014 1322.5 1148.24353 0.01890867 8348.150391 8588.25 0.031968686
12/1/2014 1321.5 1109.839722 -0.0334457 8605.099609 8282.700195 -0.035577656
1/1/2015 1277.180054 1077.822144 -0.02884883 8288.700195 8808.900391 0.06353003
2/1/2015 1241.050049 1161.863281 0.0779731 8802.5 8844.599609 0.00405263
3/1/2015 1337.550049 1110.961548 -0.04381043 8953.849609 8491 -0.039979154
4/1/2015 1282.5 1075.884521 -0.03157357 8483.700195 8181.5 -0.036450359
5/1/2015 1233.319946 1138.676147 0.05836279 8230.049805 8433.650391 0.03081958
6/1/2015 1305.119995 2226.406494 0.95525874 8417.25 8368.5 -0.007725052
7/1/2015 1282.5 1115.338745 -0.49904083 8376.25 8532.849609 0.019639076
8/1/2015 1254.949951 1144.805664 0.0264197 8510.650391 7948.950195 -0.068429592
9/1/2015 1283.5 1154.828857 0.00875537 7907.950195 7948.899902 -0.000006327
10/1/2015 1300 2253.38208 0.95126929 7992.049805 8065.799805 0.014706425
11/1/2015 1248.5 1064.803467 -0.52746431 8054.549805 7935.25 -0.016185599
12/1/2015 1182.5 1098.099487 0.03126964 7958.149902 7946.350098 0.001398834
1/1/2016 1216.050049 1076.490356 -0.01967866 7924.549805 7563.549805 -0.048173097
2/1/2016 1196 987.033142 -0.0831008 7589.5 6987.049805 -0.076220824
3/1/2016 1091.25 1138.197876 0.15315062 7038.25 7738.399902 0.10753467
4/1/2016 1252.530029 1144.53125 0.00556439 7718.049805 7849.799805 0.014395728
5/1/2016 1265.030029 1164.906006 0.01780183 7822.700195 8160.100098 0.039529708
6/1/2016 1288.949951 1153.913574 -0.00943633 8179.200195 8287.75 0.015643178
7/1/2016 1276.550049 1209.389893 0.04807667 8313.049805 8638.5 0.042321499
8/1/2016 1310 1166.476929 -0.03548315 8654.299805 8786.200195 0.017097898
9/1/2016 1264.5 1126.847778 -0.03397337 8793.599609 8611.150391 -0.019923266
10/1/2016 1220 1113.86731 -0.01151927 8666.150391 8638 0.003118005
11/1/2016 1197 1062.692871 -0.04594303 8653.150391 8224.5 -0.047869877
12/1/2016 1145 1102.451538 0.03741313 8244 8185.799805 -0.004705477
1/1/2017 1182.5 1040.820923 -0.05590324 8210.099609 8561.299805 0.045872121
2/1/2017 1112.180054 1157.835571 0.11242534 8570.349609 8879.599609 0.037178911
3/1/2017 1242 1141.218262 -0.01435205 8904.400391 9173.75 0.033126538
4/1/2017 1217.5 1066.579468 -0.06540273 9220.599609 9304.049805 0.014203549
5/1/2017 1136.050049 1194.385254 0.11982772 9339.849609 9621.25 0.034092702
6/1/2017 1265 1109.888916 -0.07074463 9603.549805 9520.900391 -0.010429997
7/1/2017 1182 1197.218872 0.07868351 9587.950195 10077.09961 0.058418762
8/1/2017 1247.030029 1205.289185 0.00674088 10101.04981 9917.900391 -0.015798119
9/1/2017 1237.5 1176.440308 -0.02393523 9937.650391 9788.599609 -0.013037112
10/1/2017 1218.5 1262.996094 0.07357431 9893.299805 10335.29981 0.055850706
11/1/2017 1311 1278.592773 0.01234895 10390.34961 10226.54981 -0.010522191
12/1/2017 1318.5 1310.705322 0.02511554 10263.7002 10530.7002 0.029741252
1/1/2018 1344.900024 1510.368774 0.15233283 10477.54981 11027.7002 0.047195342
2/1/2018 1560 2963.418945 0.96204993 11044.54981 10492.84961 -0.048500646
3/1/2018 1520.5 1389.561401 -0.53109519 10479.9502 10113.7002 -0.036134075
4/1/2018 1422.5 1722.211426 0.2393921 10151.65039 10739.34961 0.061861574
5/1/2018 1765.699951 1701.826294 -0.0118366 10783.84961 10736.15039 -0.000297897
 6/1/2018 1758 1816.68042 0.06748875 10738.4502 10714.29981 -0.002035235
7/1/2018 1829.949951 1909.176636 0.05091496 10732.34961 11356.5 0.059938606
8/1/2018 1951 2047.982788 0.07270472 11359.79981 11680.5 0.028529917
9/1/2018 2080.050049 2152.737305 0.0511501 11751.79981 10930.4502 -0.064213844
10/1/2018 2186 1909.427246 -0.11302357 10930.90039 10386.59961 -0.049755552
11/1/2018 1940.099976 1946.039673 0.01917456 10441.7002 10876.75 0.04719065
12/1/2018 1980.099976 1869.950073 -0.03909972 10930.7002 10862.54981 -0.001305555
1/1/2019 1905 1989.491333 0.06392751 10868.84961 10830.9502 -0.002909042
2/1/2019 2005 1963.719849 -0.01295381 10851.34961 10792.5 -0.00355003
3/1/2019 1990 1979.702881 0.00813916 10842.65039 11623.90039 0.077035014
4/1/2019 2010 2231.618896 0.12724941 11665.2002 11748.15039 0.010689183
5/1/2019 2254.949951 2174.120361 -0.02576539 11725.54981 11922.79981 0.01486612
6/1/2019 2207.800049 2204.205811 0.01383799 11953.75 11788.84961 -0.011234794
7/1/2019 2239.649902 2200.259521 -0.00179035 11839.90039 11118 -0.056905434
8/1/2019 2206 2214.899902 0.00665393 11060.2002 10829.34961 -0.025962438
CAPM Parameters 1.2
1
Beta 0.445471 0.8
R-square 0.004787 0.6
0.4
Intercept 0.036048
0.2
0
Jensen alpha = Intercept - Rf(1-beta) -0.2 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58
Jensen alpha = -0.27449 -0.4
-0.6
-0.8
TCS Return Ni fty IT return

SUMMARY OUTPUT OF REGRESSION

Regression Statistics
Multiple R 0.069186
R Square 0.004787
Adjusted R Square -0.01237
Standard Error 0.252393
Observations 60

ANOVA
df SS MS F Significance F
Regression 1 0.017771 0.017771 0.278962 0.5993976638
Residual 58 3.69474 0.063702
Total 59 3.712511

Coefficients
Standard Error t Stat P-value Lower 95% Upper 95%
Intercept 0.036048 0.032961 1.093646 0.278632 -0.029931327 0.102027564
X Variable 1 0.445471 0.843427 0.528168 0.599398 -1.242831446 2.133774387
25 28 31 34 37 40 43 46 49 52 55 58 61

urn Ni fty IT return

Lower 95.0% Upper 95.0%

-0.029931327 0.102027564
-1.242831446 2.133774387
 Date Open Adj Close INFY Return NIFTY IT open Adj Close Nifty IT return
8/1/2014 418.75 322.2179 7662.5 7954.350098
9/1/2014 451.256 335.5543 0.04138947 7990.350098 7964.799805 0.0013137097
10/1/2014 465.25 362.7277 0.08098064 7960.5 8322.200195 0.0448724888
11/1/2014 509.612 415.8281 0.14639183 8348.150391 8588.25 0.031968686
12/1/2014 548.375 376.2711 -0.0951282 8605.099609 8282.700195 -0.035577656
1/1/2015 492.237 408.5748 0.08585231 8288.700195 8808.900391 0.0635300305
2/1/2015 535.375 432.2 0.05782347 8802.5 8844.599609 0.0040526305
3/1/2015 575.75 423.1584 -0.0209201 8953.849609 8491 -0.039979154
4/1/2015 549.725 370.4906 -0.1244635 8483.700195 8181.5 -0.036450359
5/1/2015 485.562 385.9232 0.04165471 8230.049805 8433.650391 0.0308195797
6/1/2015 508.2 375.5363 -0.0269144 8417.25 8368.5 -0.007725052
7/1/2015 494.5 450.1445 0.19867085 8376.25 8532.849609 0.0196390762
8/1/2015 539 457.3958 0.01610879 8510.650391 7948.950195 -0.068429592
9/1/2015 545 485.6278 0.06172348 7907.950195 7948.899902 -0.000006327
10/1/2015 584.95 474.5522 -0.0228067 7992.049805 8065.799805 0.0147064253
11/1/2015 565 463.1198 -0.024091 8054.549805 7935.25 -0.016185599
12/1/2015 544 470.5696 0.01608605 7958.149902 7946.350098 0.0013988341
1/1/2016 550 495.8988 0.05382673 7924.549805 7563.549805 -0.048173097
2/1/2016 585 461.4809 -0.069405 7589.5 6987.049805 -0.076220824
3/1/2016 547.4 518.6313 0.12384122 7038.25 7738.399902 0.1075346703
4/1/2016 608 514.289 -0.0083726 7718.049805 7849.799805 0.0143957284
5/1/2016 605 531.5513 0.03356531 7822.700195 8160.100098 0.0395297079
6/1/2016 623.025 498.4104 -0.0623475 8179.200195 8287.75 0.0156431784
7/1/2016 590 467.9096 -0.0611962 8313.049805 8638.5 0.0423214986
8/1/2016 535.75 451.3518 -0.0353866 8654.299805 8786.200195 0.0170978984
9/1/2016 519 451.439 0.0001931 8793.599609 8611.150391 -0.019923266
10/1/2016 517.75 434.6415 -0.0372087 8666.150391 8638 0.0031180049
11/1/2016 503.4 434.2939 -0.0007998 8653.150391 8224.5 -0.047869877
12/1/2016 488 449.8974 0.03592847 8244 8185.799805 -0.004705477
1/1/2017 505.55 413.3928 -0.0811399 8210.099609 8561.299805 0.0458721211
2/1/2017 460.55 450.6988 0.09024347 8570.349609 8879.599609 0.0371789111
3/1/2017 506 455.0838 0.00972936 8904.400391 9173.75 0.0331265377
4/1/2017 516.075 409.0969 -0.1010516 9220.599609 9304.049805 0.0142035487
5/1/2017 459.475 434.9617 0.06322424 9339.849609 9621.25 0.0340927017
6/1/2017 484.65 416.4868 -0.0424747 9603.549805 9520.900391 -0.010429997
7/1/2017 470.55 464.1795 0.11451181 9587.950195 10077.09961 0.0584187624
8/1/2017 505.5 419.9971 -0.0951839 10101.04981 9917.900391 -0.015798119
9/1/2017 457.975 413.0886 -0.0164489 9937.650391 9788.599609 -0.013037112
10/1/2017 449.95 423.1645 0.02439161 9893.299805 10335.29981 0.0558507057
11/1/2017 462.5 460.7562 0.08883481 10390.34961 10226.54981 -0.010522191
12/1/2017 489.7 491.8871 0.06756491 10263.7002 10530.7002 0.0297412515
1/1/2018 518.85 542.9616 0.1038337 10477.54981 11027.7002 0.0471953423
2/1/2018 571.1 553.5117 0.01943056 11044.54981 10492.84961 -0.048500646
3/1/2018 584.8 534.2526 -0.0347944 10479.9502 10113.7002 -0.036134075
4/1/2018 570.5 566.2094 0.059816 10151.65039 10739.34961 0.0618615741
5/1/2018 599.75 581.4564 0.02692811 10783.84961 10736.15039 -0.000297897
 6/1/2018 615.2 617.048 0.06121115 10738.4502 10714.29981 -0.002035235
7/1/2018 657 665.7921 0.07899571 10732.34961 11356.5 0.059938606
8/1/2018 681.9 702.8591 0.05567356 11359.79981 11680.5 0.0285299168
9/1/2018 724.5 712.1259 0.01318432 11751.79981 10930.4502 -0.064213844
10/1/2018 737.5 669.5475 -0.0597904 10930.90039 10386.59961 -0.049755552
11/1/2018 689.7 658.1528 -0.0170185 10441.7002 10876.75 0.0471906504
12/1/2018 673.15 649.7712 -0.012735 10930.7002 10862.54981 -0.001305555
1/1/2019 660.95 739.1092 0.13749139 10868.84961 10830.9502 -0.002909042
2/1/2019 751.35 724.0716 -0.0203456 10851.34961 10792.5 -0.00355003
3/1/2019 735.5 733.4886 0.01300561 10842.65039 11623.90039 0.0770350142
4/1/2019 742 740.8841 0.01008265 11665.2002 11748.15039 0.0106891831
5/1/2019 751.35 727.4736 -0.0181007 11725.54981 11922.79981 0.01486612
6/1/2019 729.8 721.8037 -0.007794 11953.75 11788.84961 -0.011234794
7/1/2019 735 793.65 0.09953728 11839.90039 11118 -0.056905434
8/1/2019 786.45 795.7 0.00258299 11060.2002 10829.34961 -0.025962438
CAPM Parameters
0.25
0.2
Beta 0.63806
R-square 0.139806 0.15
Intercept 0.013543 0.1
0.05
Jensen alpha = Intercept - Rf(1-beta)
0
Jensen alpha = -0.18914 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52
-0.05
-0.1
-0.15
INFY Return Ni fty IT return

SUMMARY OUTPUT OF REGRESSION

Regression Statistics
Multiple R 0.373906
R Square 0.139806
Adjusted R Square 0.124975
Standard Error 0.062189
Observations 60

ANOVA
df SS MS F Significance F
Regression 1 0.036457 0.036457 9.426628 0.003252
Residual 58 0.224313 0.003867
Total 59 0.260771

Coefficients
Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0%
Intercept 0.013543 0.008122 1.66754 0.100798 -0.00271 0.029800239 -0.002714057
X Variable 1 0.63806 0.207818 3.070281 0.003252 0.222067 1.054053005 0.2220669013
31 34 37 40 43 46 49 52 55 58 61

Ni fty IT return

Upper 95.0%
0.029800239
1.054053005