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The Small-Firm Effect

Question 79

Multiple Choice

The small-firm effect


A) shows that investments in the stocks of small firms would have earned a below-normal return during the period beginning in the mid-1920s.
B) may be the result of the low liquidity and high information costs of small-firm stock.
C) was stronger during the 1980s than in previous decades.
D) existed only during the 1970s and 1980s.

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