TY - JOUR T1 - Practical Applications of Book-to-Market and the Cross-Section of Expected Returns in International Stock Markets JF - Practical Applications SP - 1 LP - 5 DO - 10.3905/pa.2014.1.3.029 VL - 1 IS - 3 AU - Turan G. Bali AU - Nusret Cakici AU - Frank J. Fabozzi A2 - Goyal, Gauri Y1 - 2014/01/31 UR - https://pm-research.com/content/1/3/1.9.abstract N2 - Book-to-Market and the Cross-Section of Expected Returns in International Stock Markets Turan G. Bali Nusret Cakici Frank J. Fabozzi A number of studies of the US equity market have attempted to explain the “value premium,” which refers to the higher average returns, over the long run, of value stocks purchased at low prices relative to their book value. But what part of the value premium (taking book-to-market as a proxy) has higher predictive power for estimating future returns, particularly in the international markets? Turan G. Bali, the Robert S. Parker Chair Professor of Business Administration in the McDonough School of Business at Georgetown University in Washington, DC, That’s pretty much restates the premise without adding anything to it.This Practical Applications report showcases their findings in Book-to-Market and the Cross-Section of Expected Returns in International Stock Markets , which appeared in the Winter 2013 issue of The Journal of Portfolio Management . Bali, Nusret Cakici and Frank J. Fabozzi extend the analytical method and findings of the 2008 Fama and French study for the US equity market to the six non-US G7 countries: The United Kingdom, Germany, France, Italy, Canada and Japan.Cakici is Professor of Finance in the School of Business at Fordham University in New York. Fabozzi is Professor of Finance at EDHEC Business School and is a member of the EDHEC-Risk Institute in Nice, France. ER -