Value stocks riskier than growth, challenging traditional investment strategies.
The article explores whether value stocks are riskier than growth stocks. The researchers found that the risk of value stocks is related to the market risk premium, while growth stocks have a different relationship with it. This means that the risk of value stocks tends to move in the same direction as the market risk premium, while growth stocks move in the opposite direction. However, this relationship is not strong enough to fully explain why value stocks have higher returns compared to growth stocks.