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Value Investment Using Stock Index

  • Luis Javier Saz Peñas
  • Raúl Gómez Martínez
  • Camilo Prado Román
Conference paper
Part of the Studies in Systems, Decision and Control book series (SSDC, volume 180)

Abstract

Portfolio management has been separated into the value investment approach, where managers select for their portfolios those assets that are cheaper according to their stock ratios, and growth management, which is based on the potentiality of the company. The Russell index segregate in their composition the stocks that are classified in one category to another. This study analyzes the profitability of the Russell value and growth indexes from 1979 to the present day. The study shows that value investment presents a better relation between profitability and risk which should be justified by ratios level and by the market’s consideration.

Keywords

Value investment Russell index Market efficiency Stock market Enterprise value 

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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Luis Javier Saz Peñas
    • 1
  • Raúl Gómez Martínez
    • 1
  • Camilo Prado Román
    • 1
  1. 1.Universidad Rey Juan Carlos & European Academy of Management and Business EconomicsMadridSpain

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