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

This is supported by empirical evidence from the period of 1948-2002. The standard deviation of returns on small firm stocks was higher than that of the returns on average common stocks.

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