The concept value investors believe that says securities have long-term expected returns consistent with their level of risk is most related to the concept of

Question

Quizplus · Accepted Answer

Value investors often rely on the concept of regression to the mean, believing that securities that have deviated from their true value will, over time, return to their intrinsic value. This concept is grounded in the belief that the prices of securities will correct themselves over the long term, reflecting their true risk and return characteristics.

The Concept Value Investors Believe That Says Securities Have Long-Term