Value firms have relatively low book-to-market ratio

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True or False. Please provide a brief explanation.

1. “Firm size” mentioned in the size effect is measured by the book value of the equity, which is the asset minus the debt and the intangible asset in the balance sheet.

2. Value firms have relatively low book-to-market ratio.

3. If you identify winner and loser stocks based on the past performance in the last 3 years, the past winners will outperform the past losers, in the near future.

Reference no: EM131510952

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