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Journal of Finance Vol. 47 No. 2 1992

The Cross‐Section of Expected Stock Returns

Eugene F. Fama1; Kenneth R. French2,1

1 University of Chicago · 2 U.S. National Science Foundation

open access

Abstract

Two easily measured variables, size and book‐to‐market equity, combine to capture the cross‐sectional variation in average stock returns associated with market β , size, leverage, book‐to‐market equity, and earnings‐price ratios. Moreover, when the tests allow for variation in β that is unrelated to size, the relation between market β and average return is flat, even when β is the only explanatory variable.

DOI
10.1111/j.1540-6261.1992.tb04398.x
Volume
47
Issue
2
Pages
427-465
Language
en
Sources
crossref openalex

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