RETURN AND RISK ANALYSIS OF HEALTH CARE SERVICE SECTOR IN PRE-COVID-19 PERIOD AND DURING THE OUTBREAK USING THE CAPITAL ASSET PRICING MODEL (CAPM)

Abstract

The purpose of this research was to compare the rate of return with the investment risk in health care service sector listed on the Stock Exchange of Thailand. This study was divided into 2 periods; pre-COVID-19 (2016-2018) and during the COVID-19 pandemic (2019-2021). The sample group of this study is 16 firms in health care service sector listed on the Stock Exchange of Thailand. The research tools included the calculation of return rate and investment risk. To compare the return rate and the risk from investment, this study used the capital asset pricing model (CAPM) before creating the security market line (SML). The results revealed that in the pre-COVID-19 period, there were 9 securities that were recommended to invest as they were undervalued. During the COVID-19 pandemic, there were 10 securities that were recommended to invest in as they were undervalued. Between the two periods, 5 securities: BCH, CMR, PRINC, RAM, and SKR were recommended to invest in since they were above SML, reflecting that the securities were undervalued. Thus, the actual return of these securities was more than the expected rate of return. The findings of this study can be used as a guideline for those looking to invest in health care service securities.