A study on relationship between the return of value/growth portfolio and market return: Evidence from Tehran Stock Exchange

Ramezanali, M.; Setayesh, M.; Janani, M.

Management Science Letters

ISSN 1923-9343 (Online) - ISSN 1923-9335 (Print) Quarterly Publication Volume 4 Issue 7 pp. 1499-1502 , 2014

A study on relationship between the return of value/growth portfolio and market return: Evidence from Tehran Stock Exchange Pages 1499-1502 Download PDF

Authors: Monireh Mashhadi Ramezanali, Mohammadreza Setayesh, Mohammad Hassan Janani

Keywords: Market growth and decline, Market return, Value portfolio

Abstract: This study examines the relationship between the returns of two value and growth portfolios and the return of market on 15 selected firms on Tehran Stock Exchange over the period 2008-2011. The study divides the firms into two groups in terms of the ratios of price on earning as well as price on book value into two groups of value and growth portfolios. Using some regression analysis, the study has determined a positive and meaningful relationship between value portfolio and market return when the market is on the upside but this relationship is not meaningful during the bear session. The results indicate that during the bull sessions, value portfolios provide better investment opportunities than growth ones do.

How to cite this paper

 Ramezanali, M., Setayesh, M & Janani, M. (2014). A study on relationship between the return of value/growth portfolio and market return: Evidence from Tehran Stock Exchange.Management Science Letters , 4(7), 1499-1502.

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