Answer-first summary for fast verification
Answer: Growth-oriented stocks.
The **value effect** refers to the phenomenon where **value stocks** (characterized by below-average price-to-earnings and market-to-book ratios, and above-average dividend yields) consistently outperform **growth stocks** over extended periods. This is distinct from the **size effect**, which relates to the performance of large-cap stocks, and the **earnings surprise anomaly**, which focuses on unexpected earnings announcements. Thus, the correct answer is **B**.
Author: LeetQuiz Editorial Team
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The value effect market-pricing anomaly most likely occurs when stocks with below-average price-to-earnings and market-to-book ratios, along with above-average dividend yields, consistently outperform:
A
Large-capitalization stocks.
B
Growth-oriented stocks.
C
Stocks exhibiting negative earnings surprises.
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