The study by Fama and French maintain that the lower the ratio of market value to book value,the

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According to Fama and French, the lower the ratio of market value to book value, the higher is the potential return on the stock. This is because a lower market value to book value ratio indicates that the stock is undervalued according to its book value, which suggests that it may have some room for growth or appreciation in the future. Therefore, investors may expect higher returns from investing in stocks with a lower market value to book value ratio.

The Study by Fama and French Maintain That the Lower