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What are some possible explanations

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There has been a long-standing debate regarding the existence of a "value-growth" anomaly in financial economic research. Previous studies have shown that value stocks (low price-book ratios) have higher returns than growth stocks (high price-book ratios) in the United States and markets around the world, even after adjusting for market-wide risk factors. What are some possible explanations for why value stocks might outperform growth stocks on a risk-adjusted basis?

Reference no: EM132460228

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