Acknowledgement

To Him belongs the dimension of the Heavens and the earth, it is Allah who gives Life And death and Allah has power over all things. (Al-Quran) All acclamation to Allah who has empowered and enabled us to accomplish the task successfully. First of all we would like to thank our Allah Almighty who really helps us in every problem during the project. We would like to express our sincere and humble gratitude to Almighty whos Blessings, help and guidance has been are also our achievements in our life. We would like to admit that we completed this project due to Friends who help me for success. We also wish to express our appreciation to our teacher Sir. Raiz ahmed Who help us a lot and introduce us to new dimensions of knowledge

TABLE Of CONTENTS Abstract/Executive Summary Introduction of banks General Introduction /History 3 months weekend price (January to March) data collection for 2 banks Working of Calculations: Average Price Weekly Return Average Return Variance Standard Deviation Coefficient of Variance (COV)

Interpretation and comparison of two banks on the basis of above calculations Recommendations for risk averse investor for two banks

Abstract
This research based on investment and sock. Relation`ship between risk and return of the stock in KLSE is important to the investor when making the selection decision for portfolio investment, Decision made weather to invest or not in particular stock depends greatly on investor's level of risk aversion and also the returns per unit of risk offered by the particular stock, Investor's ultimate goal is to maximise the gain or return from investment depends on how much risk is assumed, Construction of portfolio was use to diversify unsystematic risk of individual stocks to reduce the overall risk of portfolio but maintaining the return, This study is to analyse the relationship of risk and returns of stock listed on KLSE's Mainboard, The analysis was to determine whether portfolio construction can diversified unsystematic risk and which portfolio strategies to be use to construct efficient portfolio, The findings indicate that portfolio construction can diversify unsystematic risk, Portfolio by design strategy in portfolio construction was better in diversifying risk rather than using na'ive portfolio strategy,. This report has been made from the data of two commercial banks taken from Karachi Stock Exchange. In this report I have taken 3 month weekend stock prices of Muslim Commercial Bank and National Bank of Pakistan of year 2012, then I have calculated the Average Price, Average Return, Weekly Return, Variance, Standard Deviation and Coefficient of Variation of these banks. The standard deviation and coefficient of variances help us to find out the total risk and systematic risk after that I analyze in which bank I will investment money.

Introduction of companies:
Bank Alfalah
Bank Alfalah Limited was launched on June 21, 1992 as a public limited company under the Companies Ordinance 1984. The bank commenced its

operations on November 1, 1992. The bank introduced commercial banking and related services as defined in the Banking companies ordinance, 1962. After a few years, the bank introduced its new identity of H.C.E.B after the privatization in 1997. The management of the bank had implemented strategies and policies so the bank would become a major player in the market. With a partnership with the Abu Dhabi Group the position of the bank became stronger which allowed the bank to invest more in technology to increase its range of products and services. LUCKY Introduction: Indus Motor Company (IMC) is a joint venture between the House of Habib , Toyota Motor Corporation Japan (TMC) , and Toyota Tsusho Corporation Japan (TTC) for assembling, progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01, 1990. IMC is engaged in sole distributorship of Toyota and Daihatsu Motor Company Ltd. vehicles in Pakistan through its dealership network. The company was incorporated in Pakistan as a public limited company in December 1989 and started commercial production in May 1993. The shares of company are quoted on the stock exchanges of Pakistan. Toyota Motor Corporation and Toyota Tsusho Corporation have 25 % stake in the company equity. The majority shareholder is the House of Habib. IMC's production facilities are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres. Indus Motor company's plant is the only manufacturing site in the world where both Toyota and Daihatsu brands are being manufactured. Heavy investment was made to build its production facilities based on state of art technologies. To ensure highest level of productivity world-renowned Toyota Production Systems are implemented. IMC's Product line includes 6 variants of the newly introduced Toyota Corolla, Toyota Hilux Single Cabin 4x2 and 4 versions of Daihatsu Cuore. We also have a wide range of imported vehicles.