Even though no final conclusion is currently warranted, a number of research pap
ID: 2754155 • Letter: E
Question
Even though no final conclusion is currently warranted, a number of research papers, including those of Fama and French, have argued that:
there is no noticeable difference in the returns of growth versus value stocks.
growth stocks outperform value stocks.
stocks with high book-value-to-stock-price ratios outperform stocks with low ratios.
no observable differences in returns can be associated with varying price-earnings ratios.
stocks with low earnings-to-price ratios outperform stocks with high ratios.
Explanation / Answer
C) stocks with high book-value-to-stock-price ratios outperform stocks with low ratios.
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