Patrick Collins, Ph.D, CLU, CFA has released a working paper on the topic of Multifactor Asset Pricing Models and the Rationale for Investing in Value Stocks.

This article summarizes academic research into multifactor asset pricing models, with specific emphasis on growth and value stocks. The article notes that empirical studies observe that value stocks typically generate superior risk-adjusted returns relative to growth stocks, and addresses implications for the Efficient Market Hypothesis if value stocks, in fact, represent an improperly priced risk factor.

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