Question: The value or book-to-market effect refers to the finding that firms with high ratios of book value to market value (B/M) (or similarly low ratios

The value or book-to-market effect refers to the finding that firms with high ratios of book value to market value (B/M) (or similarly low ratios of market value to book value (M/B)) tend to have annual returns ______________ returns for firms with lower ratios.

A. less than

B. greater than

C. equal to

D. unrelated to

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