based on the historical return patterns, which of the following statements is correct? based on the historical return patterns, which of the following statements is correct? stocks with low p/e ratio have lower return than stocks with high p/e ratio. high book-to-market ratio firms have lower return than low book-to-market ratio firms. small firms have higher return than larger firms. stocks with low returns over past 3 to 5 year period continue to perform poorly in the subsequent time period.