Question: There has been a long-standing debate regarding the existence of a value-growth anomaly in financial economic research. Previous studies have shown that value stocks (i.e.,

There has been a long-standing debate regarding the existence of a "value-growth" anomaly in financial economic research. Previous studies have shown that value (i.e., with low price-to-book ratios) have higher returns than growth (i.e., with high price-to-book ratios) in the United States and markets around the world, even after adjusting for a market-wide risk factor. What are some possible explanations for why value might outperform growth on a risk-adjusted basis? Is this value-growth "anomaly" consistent with the existence of an efficient stock market?

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