Compared to the stocks of larger firms, the stocks of smaller firms are
A) less volatile.
B) more volatile.
C) more liquid.
D) safer.

Question

Quizplus · Accepted Answer

The stocks of smaller firms are generally more volatile than those of larger firms. This is because smaller firms are often more susceptible to market fluctuations, have less diversified business operations, and are more sensitive to economic changes, leading to greater price swings in their stocks.

Compared to the Stocks of Larger Firms, the Stocks of Smaller