The strongest explanations for the size anomaly are
A) risk measurements
B) higher transaction costs
C) P/E ratio
D) Choices a and b.
E) Choices b and c.

Question

Quizplus · Accepted Answer

The strongest explanations for the size anomaly are risk measurements and higher transaction costs. Choice D includes both of these options. The P/E ratio is not as strong of an explanation compared to risk measurements and transaction costs.

The Strongest Explanations for the Size Anomaly Are