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There has been a long-standing debate regarding the existence of a valuegrowth anomaly in financial economic research. Previous studies have shown that value stocks (low

There has been a long-standing debate regarding the existence of a valuegrowth anomaly in financial economic research. Previous studies have shown that value stocks (low pricebook ratios) have higher returns than growth stocks (high pricebook ratios) in the United States and markets around the world, even after adjusting for market-wide risk factors. What are some possible explanations for why value stocks might outperform growth stocks on a risk-adjusted basis?

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