[chkdsk]

The reason value works isn't just behavioral mispricing. Numerous academic studies have shown there is an inherent risk component driving the persistently larger returns found in "value" stocks.

Behavioral mispricing can be arbitraged. Risk cannot be arbitraged away.

Value still works and will always work due to this added risk component.

[throwawaymath]

> Numerous academic studies have shown there is an inherent risk component driving the persistently larger returns found in "value" stocks.

I know this is an annoying question, but can you reference a couple of them? I’m interested in reading.