Stocks with lower market capitalizations have ________ average returns.This empirical result is called the size effect.

Name: Stocks with lower market capitalizations have ________ average returns.This empirical result is called the size effect.
Brand: Quizplus
Rating: 4.7 (49 reviews)

Question

Quizplus · Accepted Answer

The size effect refers to the empirical observation that stocks with lower market capitalizations tend to have higher average returns. Therefore, the best choice is A, which states that stocks with lower market capitalizations have higher average returns.

Stocks with Lower Market Capitalizations Have ________ Average Returns