Risk and Return

Of
Everest Bank Limited
By:
SUJIT Lal kamat
TU Reg. No. 7-2-0835-0059-2014
BBS 4th year
Phone No:- 9817398342

A PROJECT WORK PROPOSAL

Submitted To
Management Research Committee
Edenburgh College, Biratnagar
Faculty of Management
Tribhuvan University
In partial fulfillment of the requirement for the degree of
BACHELOR OF BUSINESS STUDIES(BBS)
Biratnagar
April 29, 2018
 TABLE OF CONTANT
CONTENTS
1.1 BACKGROUND OF THE STUDY

1.2 STATEMENT OF THE PROBLEM

1.3 OBJECTIVES OF THE STUDY

1.4 RATIONAL OF THE PROBLEM

1.5 REVIEW OF THE STUDY

1.6 RESEARCH METHODS

1.6.1 Types and scope of research

1.6.2 Sources of data

1.6.3 Data collection method

1.6.4 Population and sampling

1.6.5 Tools and technique of analysis

1.7 LIMITATION OF THE STUDY

1.8 ORGANIZATION OF STUDY

1.1 BACKGROUND OF STUDY:-
Risk is the uncertainly that an investment will earn its
expected rate of return. Return is the different between the
amount you invest and the amount you receive back. It is
considered as reward for investing or the level of profit
from an investment. The size of return depends on the rate
of interest you charge. The risk is defined as variability in
return. In other word the risk is the chance that an
investment will fail to generate the reward as expected.
Investors invest in an expectation of returns other
thing held constant, investor always prefer higher return to
the lower one as it increase their wealth. However an
investor performance dose not only depends on the level of
nature but also the level of risk associate with it. Therefore,
it is necessary to consider investment return and risk
together.

1.2 STATEMENT OF THE PROBLEMS:

Every Bank must think about how the position of the
bank can be improved as well as how can be put for
serving the people.
 not making enough money. despite all of the headline about
banking profitability.bank and financial institutions still are
not making enough return on investment.
  These days it all about customer experience and many
banks are felling presure because they are not delivering
the level service that consumer are demanding.
 The decision regarding financial position of the nmb bank
limited aren’t properly interpreted.

1.3 OBJECTIVE OF THE STUDY:

The main objective of the study is to find out the
condition of the portfolio manage in nmb bank
limited.
The specific objective of the study are :
 To show the risk and return analysis of the nmb bank
limited.
 To provide suggestion to bank about financial activities.
 To analysis profitability position of the nmb bank limited.
 To examine the relative measure of return on different
variable.
1.4 RATIONALE OF STUDY:
 The study is concern with the financial position of the nmb
bank limited.
 Its helps to know weakness of the bank.
 The finding conclusion of the study will be significant to
nmb bank limited in making their financial decision.
1.5 REVIEW OF THE LITERATURE:
 There are plenty of empirical and theoretical studies
related to the asset-pricing model, which try to determine
the elements affecting the amount of expected return and
risk for five years now, portfolio investment theory was the
first modern theory proposed by Markowitz(1952).
Way to evaluate risk, in the theory and practice of
investing, a widely used risk and return is a complex topic.
There are many types of risk and much definition of risk is,
risk is the uncertainly that an investment will its expected
rate of return.
There are few hypothesis relation to the relationship
between risk and expected return. One of the well known
risk return relationship assumption emphases an a positive
relationship between the two there by increasing the
amount of systematic risk, the amount of expected return
will increasing as well.
1.6 RESEARCH METHOD
1.6.1 Types and scopes of research
This study is based on primary and secondary sources
of data and information and follows the analytical and
descriptive research design. It is because this study
describes the return, risk and the relationship between
return and of nmb bank limited Biratnagar and tries to
analyze the problem in risk management management.
1.6.2 Sources of data
 There are mainly two types of sources of data like primary
and secondary. This study is based on both primary and
secondary data.
1.6.3 Data collection method
Data will be collected from annual report of nmb bank
limited, filed visit to bank and bank's website visit.
1.6.4 Population and sampling
There are many banks in Biratnagar as population and nmb
bank limited is taken as a sample bank by random method.
1.6.5 Tools and Techniques
Different statistical tools like standard deviation, ratios,
average and percentage will be used to analyze the data.
Diagram will be used to identify the return of nmb bank
limited.
1.7 LIMITATION OF THE STUDY:
The study is mainly concerned with the analysis of return,
risk and the relationship between risk and return of bank.
The following are the limitation of the study:
i. This report is limited to nmb bank limited Biratnagar
only.
ii. This study considers only the change in return causes
by the changes in risk, other factors influencing
returns are not considers.
iii. This study is best on three years data but correct
conclusion can not be done based on three years of
period.
1.8 ORGANIZATIONS OF THE STUDY:
 This study will be separated into five chapters:
Chapter I- Introduction: Background of the study, Statement
of the problem, objectives of the study, theoretical bases,
limitation of the study, definition of terms, organization of the
reminder of the study.
Chapter II- Review of Literature: Chronological and
categorical presentation of theoretical viewpoints related to
topics.
Chapter III- Research methods: Research design and
approach (qualitative or quantitative), population and sample,
collection and tabulation of data and data analysis procedures.
Chapter IV- Result and finding: Presentation of data, analysis
of data and finding of data.
Chapter V- Discussion and conclusion: Evaluation and
interpreting the implication results obtained. Finding the
similarities and difference between results obtained from the
study and the works the others. Present implication of
conclusion for practical application or future studies.