Small firms have tended to earn abnormal returns primarily in ________.
A) the month of January
B) the month July
C) the trough of the business cycle
D) the peak of the business cycle

Question

Quizplus · Accepted Answer

Small firms have historically earned abnormal returns primarily in the month of January, known as the "January Effect." This may be due to tax-loss selling in December and subsequent buying in January, as well as increased investor attention to small firms at the beginning of the year.

Small Firms Have Tended to Earn Abnormal Returns Primarily in ________