Question: Historically, value stocks have generated higher average returns than growth stocks. If the pattern can be explained by the CAPM, which ONE of the followings

Historically, value stocks have generated higher average returns than growth stocks. If the pattern can be explained by the CAPM, which ONE of the followings must be true?

Multiple Choice

  • value=growth and value=growthvalue=growth and value=growth

  • value>growth and value=growthvalue>growth and value=growth

  • value=growth and value>growthvalue=growth and value>growth

  • value>growth and value>growth

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