000			01612pab a2200205 454500
008			140923b0 xxu||||| |||| 00| 0 eng d
040			_cWelingkar Institute of Management Development & Research, Mumbai _aWelingkar Institute of Management Development & Research, Mumbai
041			_aENG
082			_a _bKak
100			_aKakati M
245			_aAbnormal Profit Opportunity in Indian Capital Market Revisited
250			_a5
260			_a _bMay 2009 _c0
300			_a49-61 Pp.
490			_v15
520			_aThis paper investigates residual risk and return and the potential for value maximization in the Indian capital market, considering 401 Indian stocks. The study uses the concept of information ratio, which measures residual return per unit of residual risk, and also the value maximization model, which optimizes residual risk-return, considering the different levels of risk-taking capability of the investor. The study finds that the residual return is high in the Indian capital market, but it is accompanied by a much higher residual risk and, therefore, the market provides little scope for earning abnormal return (i.e., return adjusted for market and residual risks). As such, value maximization opportunity is limited. The study further concludes that only those investors who have superior stock selection ability and are aggressive should opt for the active management strategy, while for others, the index fund (passive management) seems a better strategy.
650			_aIndian Capital Market
856			_uhttp://192.168.6.13/libsuite/mm_files/Articles/AR10629.pdf
906			_a31914
999			_c30454 _d30454