An analysis of risk and return: the case of the health care services sector (Thai)

Abstract

The objective of this study was to analyze risk and return on securities in the Health Care Services Sector of the Stock Exchange of Thailand. A Multifactor Model including the Consumer Price Index and the Business Sentiment Index was used, and applied to a Capital Asset Pricing Model (CAPM), and monthly data between October 2003 and September 2008. The results showed that the Health Care Services sector has no relationship with market rate of return, Consumer Price Index and Business Sentiment Index. In addition, compared to the Securities Market Line (SML), it can be seen that most securities (9 from 13) stay around the Securities Market Line, which means that the prices for the Health Care Services Sector are almost at equilibrium market prices.