Independent University, Bangladesh
FIN460
Section: 2
Risk-Return Analysis of Selected Stocks from the Dhaka Stock Exchange (DSE)
Submitted To: Dr. Md. Taslim Uddin
Submitted By: Arif Hossain
ID: 1830217
Date of Submission: 16/04/2025
Risk-Return Analysis of Selected Stocks from the
Dhaka Stock Exchange (DSE)
Introduction
In the realm of stock market investing, understanding the trade-off between risk and return
is fundamental. Return refers to the gain or loss an investor experience over a period, while
risk is the uncertainty associated with those returns — often measured by volatility or
standard deviation. Investors seek to maximize their returns while minimizing risk, and
evaluating this balance is crucial in building a well-informed portfolio.
The Dhaka Stock Exchange (DSE), as Bangladesh's premier stock market, offers a diverse
range of investment opportunities across various sectors. Analyzing DSE-listed stocks
provides insight into the performance of domestic companies and allows investors to
identify high-growth and stable investment opportunities. This report analyzes three stocks
from different sectors of the DSE to understand how their returns, volatility, and riskadjusted performance vary over a six-month period, enabling us to make data-driven
investment decisions.
Stock Selection & Data Collection
The following three companies were selected from different sectors of the DSE based on
their trading activity and industry representation:
- Marico Bangladesh Limited (FMCG Sector)
- Shinepukur Ceramics Limited (Manufacturing Sector)
- Beximco Pharmaceuticals Ltd. (Pharmaceuticals Sector)
Historical monthly stock prices were collected from Investing.com for the period of
October 2024 to March 2025.
Historical Stock Prices (BDT)
Month
Marico
Shinepukur
Ceramics
Beximco Pharma
03/23/2025
2,435.80
26.2
99.1
03/16/2025
2,382.60
25.2
87.2
3/9/2025
2,369.90
20
81.1
3/2/2025
2,390.20
17.1
78.3
02/23/2025
2,371.50
17.7
78.6
02/16/2025
2,419.80
14.7
76.7
2/9/2025
2,387.80
11.5
76.4
2/2/2025
2,395.60
11.4
77.1
01/26/2025
2,321.10
11.3
75.6
01/19/2025
2,317.50
12.4
76.8
1/12/2025
2,316.00
12.5
75.1
1/5/2025
2,300.40
12.1
78.2
12/29/2024
2,315.20
12.7
78.2
12/22/2024
2,299.90
12
81.4
12/15/2024
2,293.90
12.3
85
12/8/2024
2,280.70
12.9
84.3
12/1/2024
2,308.00
13.2
82.1
11/24/2024
2,332.50
12.8
86.9
11/17/2024
2,312.30
12
79.8
11/10/2024
2,331.10
14.2
89.2
11/3/2024
2,348.70
15.2
82.5
10/27/2024
2,287.80
11.8
74
10/20/2024
2,206.50
11.3
71.7
10/13/2024
2,248.10
12.1
72.9
10/6/2024
2,258.80
13.1
73.3
Calculations & Analysis
The following calculations were made using Excel to determine monthly returns, average
returns, standard deviation (risk), and Sharpe Ratio (risk-adjusted return):
Monthly Return Formula
Monthly Return (%) = ((Current Month Price - Previous Month Price) / Previous Month Price)
× 100
Average Return Formula
= AVERAGE(range of monthly returns)
Standard Deviation Formula
= STDEV.S(range of monthly returns)
Sharpe Ratio Formula
= (Average Return - Risk-Free Rate) / Standard Deviation
Risk-Free Rate assumed: 0.15%
Summary of Risk and Return
Stock Name
Marico
Bangladesh
Limited
Shinepukur
Ceramics
Limited
Beximco
Pharmaceutic
als Ltd.
Average
Return (%)
0.24%
Standard
Deviation (%)
1.43%
Sector
Comment
FMCG
Low Return,
Low Risk
3.55%
12.06%
Manufacturin
g
High Return,
High Risk
Investing.com
0.88%
4.93%
Pharmaceutic
als
Moderate
Return,
Moderate
Risk
Investing.com
Risk and Return
14.00%
12.06%
12.00%
10.00%
8.00%
4.93%
6.00%
4.00%
2.00%
3.55%
1.43%
0.24%
0.88%
0.00%
MARICO
SPCERAMICS
Average Return
Standard Deviation
BXPHARMA
Data
Sources
Investing.com
When assessing the performance of different stocks, it is important to analyze not only their
average returns but also the associated risks and their risk-adjusted returns. For our portfolio
we selected 3 stocks from DSE: MARICO, SPCERAMICS, and BXPHARMA—based on their
average returns, standard deviations (as a measure of risk), and Sharpe Ratios (risk-adjusted
returns).
Return Analysis
Among the three companies, SPCERAMICS offered the highest average return of 3.55%,
significantly outperforming BXPHARMA, which yielded an average return of 0.88%, and
MARICO, which provided a modest return of 0.24%. This indicates that SPCERAMICS is able
to generate the most return for investors over the observed period.
Risk Assessment
While SPCERAMICS posted the highest return, it also carried the greatest amount of risk, as
indicated by its standard deviation of 12.06%. In contrast, BXPHARMA exhibited a moderate
level of risk with a standard deviation of 4.93%, and MARICO was the least risky, with a
standard deviation of just 1.43%. This variation in risk levels is a crucial consideration for
investors, especially those who are risk-averse an may prefer stability over higher but volatile
returns.
Risk-Adjusted Performance
To account for the balance between risk and return, we used the Sharpe Ratio as the metric.
The Sharpe Ratio calculates the excess return (Return-Risk Free Rate) earned per unit of risk,
and a higher ratio indicates a more favorable risk-adjusted performance. For our calculation,
we assumed the risk free return to be at 0.15%.
In this comparison, SPCERAMICS again leads with a Sharpe Ratio of 28.19%, suggesting that
despite its higher risk, the returns more than compensate for the volatility. BXPHARMA
follows with a Sharpe Ratio of 14.77%, and MARICO lags behind at 6.46%.
Conclusion
In conclusion, SPCERAMICS emerges as the top-performing stock across all three
dimensions: it offers the highest average return, accepts the highest level of risk, and
delivers the best risk-adjusted return. BXPHARMA stands in the middle with moderate
returns and risk, while MARICO is the most conservative option, with the lowest return and
the least amount of risk.
Portfolio decisions should be aligned with the investor’s risk appetite, and diversification
across risk levels can also be considered.
Bibliography
Beximco Pharmaceuticals stock price history - Investing.com. (n.d.). Investing.com.
https://www.investing.com/equities/beximco-pharmaceuticals-ltd-historical-data
Marico Bangladesh stock price history - Investing.com. (n.d.). Investing.com.
https://www.investing.com/equities/marico-bangladesh-ltd-historical-data
Shinepukur Ceramics stock price history - Investing.com. (n.d.). Investing.com.
https://www.investing.com/equities/shinepukur-ceramics-ltd-historical-data
03/23/2025
03/16/2025
9/3/2025
2/3/2025
02/23/2025
02/16/2025
9/2/2025
2/2/2025
01/26/2025
01/19/2025
12/1/2025
5/1/2025
12/29/2024
12/22/2024
12/15/2024
8/12/2024
1/12/2024
11/24/2024
11/17/2024
10/11/2024
3/11/2024
10/27/2024
10/20/2024
10/13/2024
6/10/2024
Marico Bangladesh Limited
Historical Price (Weekly)
Return (%)
2,435.80
2,382.60
2,369.90
2,390.20
2,371.50
2,419.80
2,387.80
2,395.60
2,321.10
2,317.50
2,316.00
2,300.40
2,315.20
2,299.90
2,293.90
2,280.70
2,308.00
2,332.50
2,312.30
2,331.10
2,348.70
2,287.80
2,206.50
2,248.10
2,258.80
3 Asset Portfolio
Shinepukur Ceramics Limited
Historical Price (Weekly)
Return (%)
2.23%
26.2
0.54%
25.2
-0.85%
20
0.79%
17.1
-2.00%
17.7
1.34%
14.7
-0.33%
11.5
3.21%
11.4
0.16%
11.3
0.06%
12.4
0.68%
12.5
-0.64%
12.1
0.67%
12.7
0.26%
12
0.58%
12.3
-1.18%
12.9
-1.05%
13.2
0.87%
12.8
-0.81%
12
-0.75%
14.2
2.66%
15.2
3.68%
11.8
-1.85%
11.3
-0.47%
12.1
13.1
Beximco Pharmaceuticals Ltd.
Historical Price (Weekly)
Return (%)
3.97%
99.1
26.00%
87.2
16.96%
81.1
-3.39%
78.3
20.41%
78.6
27.83%
76.7
0.88%
76.4
0.88%
77.1
-8.87%
75.6
-0.80%
76.8
3.31%
75.1
-4.72%
78.2
5.83%
78.2
-2.44%
81.4
-4.65%
85
-2.27%
84.3
3.12%
82.1
6.67%
86.9
-15.49%
79.8
-6.58%
89.2
28.81%
82.5
4.42%
74
-6.61%
71.7
-7.63%
72.9
73.3
MARICO
13.65%
7.52%
3.58%
-0.38%
2.48%
0.39%
-0.91%
1.98%
-1.56%
2.26%
-3.96%
0.00%
-3.93%
-4.24%
0.83%
2.68%
-5.52%
8.90%
-10.54%
8.12%
11.49%
3.21%
-1.65%
-0.55%
Average Return
Standard Deviation
Risk Free Return (Assumption)
Sharpe Ratio
SPCERAMICSBXPHARMA
0.24%
1.43%
0.15%
6.46%
3.55%
12.06%
0.15%
28.19%
0.88%
4.93%
0.15%
14.77%
Risk and Return
14.00%
12.06%
12.00%
10.00%
8.00%
6.00%
4.93%
3.55%
4.00%
2.00%
1.43%
0.88%
0.24%
0.00%
MARICO
Stock Name
Marico Bangladesh Limited
Shinepukur Ceramics Limited
Beximco Pharmaceuticals Ltd.
Average Return (%)
0.24%
3.55%
0.88%
Standard Deviation (%)
Sector
1.43% FMCG
12.06% Manufacturing
4.93% Pharmaceuticals
Comment
Low Return, Low Risk
High Return, High Risk
Moderate Return, Moderate Risk
SPCERAMICS
Average Return
Standard Deviation
BXPHARMA