On the basis of historical data from the 1948-2002 period, the return on the average common stock has fluctuated less than the return on the average stock of small firms.

Question

Quizplus · Accepted Answer

Historically, small firm stocks have exhibited higher volatility in their returns compared to the average common stock, meaning they have fluctuated more in terms of their return rates.

On the Basis of Historical Data from the 1948-2002 Period