Over the long run (90 or so years)in the United States, average annual rates of return have been higher for small-company stocks relative to large-company stocks.

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The average annual rate of return for small-company stocks has been higher than that of large-company stocks over the long run in the United States. This is known as the small-cap effect, where small-cap stocks outperform large-cap stocks in terms of returns.

Over the Long Run (90 or So Years)in the United