An Analysis Of The Role In Indian Stock Market Of The Effect Of Size And Risks On The Basis Of Price Discrepancy Evidence

Abstract

The portfolios of an organizations includes a high book-to-market (BTM) that comprise the ratio of low price-to-book (PTB) and value of the organization, beat by the organization having low BTM ratios that comprise the ratio of high PTB and the growth of the organization. In the considering analysis this is know as a price discrepancy. This asymmetry is identified with some other third factor in Fama and French’s three-factor model and is routinely utilized to elucidate the cross-section of profits. Various studies on the price discrepancy based on the Indian stock markets have mixed output as resultant. By using the huge amount of dataset and a larger system of organizations, this analytical research examines and monitor the behavior of the price discrepancy in the Indian stock market. The size and precise risk to the behavior conduct of price discrepancy is examined in this research analysis. During conduction of this research results represents the existence of price anomaly in the Indian market, but through the growing portfolios is beating the prices. A systematic and deep analysis support to uncover a potential relationship for measuring the size of organizations that are highly influenced by Indian stock market.