Value premium
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In investing, value premium refers to the greater risk-adjusted return of value stocks over growth stocks. Eugene Fama and Kenneth French first identified the premium in 1992, using a measure they called HML (high book-to-market ratio minus low book-to-market ratio) to measure equity returns based on valuation. Other experts, such as John C. Bogle, have argued that no value premium exists, claiming that Fama and French's research is period dependent.
References[edit]
- L’Her, Jean-François; Tarek Masmoudi; Jean-Marc Suret (July 2003). "Evidence to support the four-factor pricing model from the Canadian stock market" (PDF). Retrieved 2006-06-27.
{{cite journal}}: Cite journal requires|journal=(help) - Bogle, John C (February 15, 2001). "The Stock Market Universe—Stars, Comets, and the Sun". Retrieved 2006-06-27.