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Research has shown in the past that high B/M stocks generally have higher average returns than...

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Finance

Research has shown in the past that high B/M stocksgenerally have higher average returns than low B/M stocks over longperiods of time. Explain how efficient market hypothesis andbehavioral finance would differ in their explanations of thisphenomenon.

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According to efficient market hypothesis below is the explanation High BM stock called value stocks are usually from well established companies thus offers lower level of risk and    See Answer
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Research has shown in the past that high B/M stocksgenerally have higher average returns than low B/M stocks over longperiods of time. Explain how efficient market hypothesis andbehavioral finance would differ in their explanations of thisphenomenon.

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