Question: Suppose that a pattern in stock returns, such as value stocks historically yielding higher average returns than growth stocks, is attributable to data mining (i.e.,
Suppose that a pattern in stock returns, such as value stocks historically yielding higher average returns than growth stocks, is attributable to data mining (i.e., by random chance). This would imply in the future that:
- Value stocks should continue to generate higher average returns than growth stocks.
- Value stocks should generate lower average returns than growth stocks.
- Value stocks should generate the same average returns as growth stocks
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