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Financial sector is booming and the need for Risk-Return Analysis is growing. Also because of very tricky stock market behaviors it has become mandatory to manage portfolio so as to reduce the risk while maximizing the returns. Taking into consideration the investor’s risk return requirements, portfolio should be constructed and reviewed regularly. The analysis of testing the relationship between risk and return in the equity shares reveals that of all the different risk variables considered in the study, it confirms the working of risk return trade-off in the equity. Also a positive association was exhibited between the security market return correlation and the average rate of return during the study period of the study. It also exposes the relationship between systematic risk and rate of return on equities. Hence the investors must take decisions before investing in share.