For the stock market efficiency: The CAPM models are helpful to evaluate the stock market performance. there are three models which has been used to evaluate the stock return and risk (systematic and unsystematic) performance as Sharpe’s, Trynor’s and Jensen’s Alpha measure. the investors can eliminate the unsystematic risk but can’t eliminate the systematic risk. The market risk can be mitigated through the process of diversification of stocks into different sectors by the investors or through the hedging strategy. The investors want to earn more profits with minimum risk while investing in IPO shares. the beta value measures the systematic risk of the IPO in comparison to the market. At which degree the IPOs are more risky than the market or not. The investors always try to invest in steep rising phase of the market to earn short term gains rather than hold their investments for long run.