Value stocks may provide investors with better returns than growth stocks if _______.
I.value stocks are out of favor with investors
II.prices of growth stocks include premiums for overly optimistic growth levels
III.value stocks are likely to generate positive earnings surprises.
A) I only
B) II only
C) I and III only
D) I, II and III

Question

Quizplus · Accepted Answer

Value stocks can outperform if they are out of favor (I), if growth stocks are overpriced due to optimism (II), and if value stocks exceed earnings expectations (III).

Value Stocks May Provide Investors with Better Returns Than Growth