Earnings Volitility please, someone, question, opposite, practice

NakedPuts

schweser practice exams book 1 test 3 AM question 3

The answer when asked about earnings volitality in value vs growth funds says that VALUE stocks tend to have HIGHER earnings volitility than growth.

Can someone please explain how this makes sense. My understanding is the exact opposite.

oneboy

This makes absolutely no sense. Can someone confirm that this is the CFAI way of thinking about it or is it a Schweser way? Schweser is really crappy this year...case in point...IPS in Exam 3am of the same test.

skycfa

It's right out of the CFAI book.

NO EXCUSES

thommo77

Okay, I guess earnings volatility doesn't build into price volatility then? Value stocks def have alot lesss price volatility than growth stocks. I think my work experience is tripping me up here. Thanks for the confirmation.