Style portfolios are characterized by:
A) their stock attributes; P/Es less than the market P/E are value funds.
B) their systematic factors, higher systematic factors are benchmark portfolios.
C) their stock attributes; higher stock attribute factors are benchmark portfolios.
D) their systematic factors, P/Es greater than the market are value portfolios.

Question

Quizplus · Accepted Answer

Style portfolios are characterized by their stock attributes, such as P/E ratios. Specifically, value funds often have P/Es less than the market P/E, distinguishing them based on this financial metric.

Style Portfolios Are Characterized By