Price/earnings and price/book ratios, too, are included in the style box, but they are worthy of separate consideration. Just as there are degrees of market capitalizations, there are degrees of price multiples. Bridgeway Aggressive Investors (BRAGX) and Morgan Stanley Inst Mid Cap Growth (MPEGX) are both growth funds, but the Morgan Stanley fund's P/E ratio of 27.1 (as of March 2011) is significantly higher than the Bridgeway fund's 12.2. That means the Morgan Stanley fund courts more price risk (the risk that securities might be overvalued by the market) than Bridgeway Aggressive Investors.
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