Banz found that, on average, the risk-adjusted returns of small firms ________.
A) were higher than the risk-adjusted returns of large firms
B) were the same as the risk-adjusted returns of large firms
C) were lower than the risk-adjusted returns of large firms
D) were negative

Question

Quizplus · Accepted Answer

Banz's research found that small firms had a higher risk-adjusted return compared to large firms, indicating that investing in small firms could potentially provide better returns.

Banz Found That, on Average, the Risk-Adjusted Returns of Small