Understanding the Small-Firm Effect Quiz

Fact that small firms earn low returns after adjusting for risk

Lower than average returns earned by small firms

Abnormally high returns earned by small firms (correct)

Fact that small firms earn returns equal to large firms

They earn returns equal to large firms (correct)

They earn low returns after adjusting for risk

They generally earn negative returns

They earn abnormally high returns

They earn lower than average returns

They earn negative returns

They earn returns equal to large firms

They earn abnormally high returns (correct)

<p>Small firms earn abnormally high returns</p> Signup and view all the answers