Studies of investments returns (e.g., the Ibbotson Associates studies of investment returns)determined that large-cap stocks in the S&P earned higher returns than the smaller companies.

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Historically, studies like those conducted by Ibbotson Associates have shown that over long periods, small-cap stocks have tended to outperform large-cap stocks in terms of returns, contrary to the statement. This is often attributed to the higher risk associated with smaller companies, which can lead to higher potential rewards.

Studies of Investments Returns (E