5] In Assignment 5, we replicated the FamaFrench 1993 study that showed that portfolio of stocks with high book-tomarket ratios outperform portfolio of stocks with low book-tomarket ratios. The table below summarizes the ndings. There is a signicant return premium to value stocks with no discernible difference in terms of volatility or Beta. (1 Opts) Portfolio Volatility Beta Average Return Low Book-to-Market 17.28% 1.04 4.72% 2 16.18% 0.98 5.89% 3 15.57% 0.91 6.06% 4 15.45% 0.87 7.65% High Book-to-Market 17.85% 0.98 9.31% High minus Low 12.32% -0.06 4.59% a) Provide one possible explanation for why these results are consistent with efcient pricing. b) Provide one possible explanation for why the value strategy may make money on average that is consistent with investors having behavioral biases