EXAMINING THE VALIDITY OF FAMA FRENCH 3 FACTOR MODEL IN INDIAN STOCK MARKETS – AN EMPIRICAL ANALYSIS

Asset pricing theory helps the investors to understand the risk and return realised for any investment. It also tries to explain how two different stocks give varied expected returns and also explain how these returns change over time. Emerging markets like India always gives a challenge to current asset pricing theory. Because these markets are much volatile and doesn't follow these theories due incomplete market integration. The present paper tries to check the validity of Fama French 3 Factor model in Indian Stock Markets