Empirical analysis and CAPM model testing for the top 5 companies listed on the NSE. A model that explains the connection between the expected Return and risk of investing in security is called the Capital Asset Pricing Model (CAPM). This study aids in understanding that a security's expected Return equals its risk-free Return plus a risk premium determined by the security's beta. The two components of covariance and variance can be used to determine the systematic beta for each security of the chosen firms. The goal is to highlight investors' shortcomings when evaluating the CAPM of particular companies listed on the NSE. The expected returns of an asset are calculated using the CAPM algorithm. It is based on the premise of systematic risk (otherwise known as non-diversifiable risk) that investors need to be rewarded for in the form of a risk premium. A rate of Return higher than the risk-free rate is known as a risk premium. According to research, investors want a more considerable risk premium when making riskier investments.