There is an overall relationship between ________ and ________larger stocks have a lower volatility overall.

Question

Quizplus · Accepted Answer

This relationship between size and volatility is commonly known as the "size effect" in finance. It suggests that smaller stocks tend to have higher volatility and therefore, higher risk compared to larger stocks. This can be attributed to the fact that larger companies have more resources, diversified operations and stronger market positions, which make them less susceptible to sudden price changes. Therefore, investors who are risk-averse may prefer to invest in larger stocks that offer more stability and lower volatility.

There Is an Overall Relationship Between ________ and ________Larger Stocks

There Is an Overall Relationship Between and Larger Stocks