Value stocks have been earning higher average returns in comparison with growth stocks. One crucial explanation is that risk varies in terms of time. This means that the risk of strategies involving value minus growth is considerably high during difficult periods. This is the time when premium for risk expected is considerably high. This turns out to be low during good times when the premium for risk expected is considerably low. Value stocks are known to be having high returns in comparison with growth stocks. A research by Petkova and Zhang (2012) studies the relative risk involved in growth stocks and value stocks with respect to the economic scenario. Some of the researchers in this field refer to rational risk pricing theory, and other researchers consider the concept of behavioural finance. It was earlier claimed by the zealots that value premium resulted in fundamental risks for each and every investor. It has been stated by behaviourists, on the other hand, stating value assists in outperforming as investors hold the tendency of making major mistake. It has further been stated that there is no efficiency in markets and investor biases have a substantial impact on security prices.