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The book-to-market effect is when Firms with lower B/M ratio outperform higher B/M ratio Firms with higher B/M ratio outperform lower B/M ratio Firms with

The book-to-market effect is when

Firms with lower B/M ratio outperform higher B/M ratio
Firms with higher B/M ratio outperform lower B/M ratio
Firms with lower B/m ratio have the same performance as the higher B/M ratio
There is no such thing as B/M effect.

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