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What does the small-firm effect refer to?
What does the small-firm effect refer to?
- 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
In the context of the small-firm effect, what is not true about small firms?
In the context of the small-firm effect, what is not true about small 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
How are small firms affected by the small-firm effect?
How are small firms affected by the small-firm effect?
- They earn lower than average returns
- They earn negative returns
- They earn returns equal to large firms
- They earn abnormally high returns (correct)
Which statement describes the small-firm effect accurately?
Which statement describes the small-firm effect accurately?
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