Research conducted by Fama and French appear to indicate that over long periods of time, rates of return tend to be higher when
A) The book-to-market value is higher
B) The company size is higher
C) The beta is lower
D) The stock is a foreign stock
E) The growth rate of the stock is higher

Question

Quizplus · Accepted Answer

Fama and French's research suggests that stocks with a higher book-to-market ratio, which indicates they are value stocks, tend to have higher returns over long periods.

Research Conducted by Fama and French Appear to Indicate That