Researchers have found that most of the small firm effect occurs
A)during the spring months.
B)during the summer months.
C)in December.
D)in January.
E)randomly.

Question

Quizplus · Accepted Answer

Much of the so-called small firm effect simply may be the tax effect as investors sell stocks on which they have losses in December and reinvest the funds in January.As small firms are especially volatile, these actions affect small firms in a more dramatic fashion.

Researchers Have Found That Most of the Small Firm Effect