Value shares may provide investors with better returns than growth shares if ________.
I. value shares are out of favor with investors
II. prices of growth shares include premiums for overly optimistic growth levels
III. value shares are likely to generate positive earnings surprises.
A)I only
B)II only
C)I and III only
D)I, II and III

Question

Quizplus · Accepted Answer

Value shares can provide better returns if they are out of favor (I), if growth shares are overpriced due to optimistic expectations (II), and if value shares exceed earnings expectations (III).

Value Shares May Provide Investors with Better Returns Than Growth