West Loop Financial LLCBuilding Optimal Value Portfolios – West Loop Financial LLC https://www.westloopfinancial.com Evolutionize Site Wed, 19 Aug 2020 20:50:49 +0000 en-US hourly 1 https://wordpress.org/?v=5.1.22 Building Optimal Value Portfolios https://www.westloopfinancial.com/2015/10/12/building-optimal-value-portfolios/ https://www.westloopfinancial.com/2015/10/12/building-optimal-value-portfolios/#respond Mon, 12 Oct 2015 09:00:18 +0000 http://evolvemypractice.com/?p=2247 In 1981, Sanjoy Basu’s paper, “The Relationship Between Earnings’ Yield, Market Value and Return for NYSE Common Stocks,” found that the positive relationship between the earnings yield (E/P) and average return is left unexplained by market beta. Then, in 1985, Barr Rosenberg, Kenneth Reid and Ronald Lanstein uncovered the positive relationship between average stock returns...

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]]> In 1981, Sanjoy Basu’s paper, “The Relationship Between Earnings’ Yield, Market Value and Return for NYSE Common Stocks,” found that the positive relationship between the earnings yield (E/P) and average return is left unexplained by market beta.

Then, in 1985, Barr Rosenberg, Kenneth Reid and Ronald Lanstein uncovered the positive relationship between average stock returns and book-to-price (B/P) ratio in their paper, “Persuasive Evidence of Market Inefficiency.”

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