Page 23 - Abstract book - TJSSF-2020

Thailand – Japan Student Science Fair 2020 (TJ-SSF 2020)
“Seeding Innovations through Fostering Thailand – Japan Youth Friendship”

The Study of the Relationship between Return and Investment Risk
by Using Game Theory.

Thittawat Unta , Chatpakorn Tuncharorn
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Advisor : Angsananun Densathan
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Princess Chulabhorn Science High School Phitsanulok
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Abstract

The objective of this project is to study the relationship between return and investment risk in
the common stock on the Stock Exchange of Thailand by using game theory to explain the relationship.
The results showed that there are important factors that affect on return and investment risk such as the
company's performance, related industry conditions and economic conditions which will be able to
measure the company's performance from complete net company profits, industrial conditions from the
number of competitions and economic conditions from the SET Index. If the return is high and the risk
is low, then the net profit will be complete, the number of competitions will be lower and the economy
will be good for that company. The return on investment in the common stock in the Stock Exchange
of Thailand, is dividend and capital gain from the sale of the stock, and defines the risk of investing in
the common stock in the Stock Exchange of Thailand which is capital gain in loss from the sale of
stock. The relationship of return and risk to invest in equation when the equation is analyzed together
with the definitions of both parts and transformed into equations along with mathematical operations,
then will find that when the return is combined with the risk will come out as a dividend definition. If
using in the calculation, replace the dividend yield variable in percentage and when using game theory
to analyze the relationship between return and risk in competitive investment. The result of the analysis
is that if Rt-Rk is greater than -Rt, it means that you should invest in the common stock of that company.
Unless if the result is less or equal, then it should not be invested with the common stock of that
company which will be able to help guide the decision to buy the common stock in the Stock Exchange
of Thailand.
Keywords: Return on Investment, Risk on Investment, Common Stock, Game Theory

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