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4) Book-to-market ratios across industries are usually below one. This observation implies that A. The market values are too high and therefore stocks are overpriced.
4) Book-to-market ratios across industries are usually below one. This observation implies that A. The market values are too high and therefore stocks are overpriced. B. Value strategies such as buying high book-to-market (value) stocks and selling low book-to- market (growth) stocks are profitable. C. Market sentiment drives prices to grow faster than book values. D. Conservative accounting principles downward bias the asset values
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