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Value factor in the Three-Factor Model developed by Fama and French is based on the fact that historically in the U.S. the average returns of:

Value factor in the Three-Factor Model developed by Fama and French is based on the fact that historically in the U.S. the average returns of:

small stocks have been greater than the average returns of large stocks

small stocks have been lower than the average returns of large stocks

value stocks have been greater than the average returns of growth stocks

value stocks have been lower than the average returns of growth stocks

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