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Social Studies, 09.11.2019 05:31 462nolan
The fama and french evidence that high book-to-market firms outperform low book-to-market firms even after adjusting for beta means that a) high book-to-market firms are underpriced or the book-to-market ratio is a proxy for a unique risk factor b) low book-to-market firms are underpriced or the book-to-market ratio is a proxy for a systematic risk factor c) either high book-to-market firms are underpriced or the book-to-market ratio is a proxy for a systematic risk factor d) high book-to-market firms have more post-earnings drift
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