The Comparative Study of Risk and Rates of Return on the Securities in Food and Beverage Sector by Capital Asset Pricing Model: The Case Study of TWFP, F&D, MINT, SAUCE, TF and HTC

Abstract

The purpose of this study is 1.) To study of risk and rates of return on the securities in food and beverages sector, and 2.) To compare between required rates of return and expected rates of return on the securities in food and beverages sector. The securities in the study are in food and beverages sector listed in the Stock Exchange of Thailand. By randomized to select stocks with 6 securities which include TWFP, F&D, MINT, SAUCE, TF and HTC. The research was collected the secondary data from January 1st, 2011 till December 31st, 2012 and the period of 489 official trading days based on Capital Asset Pricing Model (CAPM). The Result found that, the securities in food and beverages sector, there are 4 securities investors should be invested in that include TWFP, F&D, MINT and HTC. That means these securities are performed as undervalued stocks. While, the securities in food and beverages sector, there are 2 securities investors should not invest that include SAUCE and TF. That means these securities are performed as overvalued stocks.