Historically, we observe that Book to Market ratios (BM ratio) across industries are less than one. The observation implies that:

	A.	Profitability ratios (e.g. ROA) are overstated because book value of assets overstates the true asset value.
	B.	Profitability ratios (e.g. ROA) are overstated because book value of assets understates the true asset value.
	C.	Profitability ratios (e.g. ROA) are understated because the book values of assets is too low.
	D.	Profitability ratios (e.g. ROA) are understated because the prices are too high.