Banz and Reinganum found that small firms consistently outperformed large firms. This anomaly is referred to as the
A) large firm effect.
B) size effect.
C) small firm effect.
D) earnings effect.
E) growth firm effect.

Question

Quizplus · Accepted Answer

The anomaly discovered by Banz and Reinganum, where small firms outperform large firms, is known as the size effect.

Banz and Reinganum Found That Small Firms Consistently Outperformed Large