Value premium

Value premium

In investing, value premium refers to the greater risk-adjusted return of value stocks over growth stocks. Eugene Fama and K. G. French first identified the premium in 1992, using a measure they called HML (high book-to-market ratio minus low book-to-market ratio) to measure equity returns based on valuation. Other experts, such as John C. Bogle, have argued that no value premium exists, claiming that Fama and French's research is period dependent.

References

*cite journal
last = L’Her
first = Jean-François
authorlink =
coauthors = Tarek Masmoudi, Jean-Marc Suret
year = 2003
month = July
title = Evidence to support the four-factor pricing model from the Canadian stock market
journal =
volume =
issue =
pages =
doi =
id =
url = http://www.fsa.ulaval.ca/personnel/suretjm/documents/Evidence%20to%20support%204%20factors.pdf
format = PDF
accessdate = 2006-06-27

*cite web
url = http://www.vanguard.com/bogle_site/sp20010215.html
title = The Stock Market Universe—Stars, Comets, and the Sun
accessdate = 2006-06-27
accessmonthday =
accessyear =
author = John C. Bogle
last = Bogle
first = John C
authorlink = John Bogle
coauthors =
date = February 15, 2001


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