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4. You analyzed the returns of a sample of stocks. You found that, on average, the firms with high earnings to price (E/P) ratios have
4. You analyzed the returns of a sample of stocks. You found that, on average, the firms with high earnings to price (E/P) ratios have higher subsequent returns. (iii) If mispricing is the primary reason for this pattern in E/P ratios, what long-short trading strategy will you propose? Justify your proposed strategy (Approximately three sentences)
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