This study examines the risk-return relationship in equity shares of selected companies in India, a key aspect of investment decision-making. By analyzing historical stock prices and financial indicators, the research evaluates risk factors such as beta, standard deviation, and the Sharpe ratio to assess their impact on stock returns. Utilizing statistical and financial modelling techniques, the study explores whether higher risk leads to proportionally higher returns, as proposed by modern portfolio theory. The findings offer valuable insights for investors, portfolio managers, and financial analysts, aiding in informed investment decisions and risk diversification strategies. Additionally, this research contributes to a deeper understanding of market efficiency in the Indian equity market.