Value And Risk: The PERG RatioRupert Hargreaves
Fama and French argue that argue that value strategies outperform growth strategies because the former are riskier. In their view, efficient markets simply deliver the higher returns than riskier strategies are supposed to. Lakonishok, Shleifer, and Vishny (1994) argue that value strategies yield higher returns because they exploit the suboptimal behavior of investors. In their view, inefficient markets underprice out-of-favor (value) stocks and therefore, investing in them does eventually pay off.
While the academics can’t seem to decide on the science behind why value outperforms, the numbers don’t lie. In almost all of the studies conducted . . .
This content is exclusively for paying members. Access all of our content on including years of timeless investment news and in depth analysis for only a few dollars a month by signing up here while also supporting quality content and journalism, or learn more about our premium content here
If you are subscribed and having an account error please clear cache and then cookies if that does not work email firstname.lastname@example.org and we will get back to you as quick as humanly possible