Which of the following is NOT a reason for the failure of investment in small firms to catch on as an important strategy?
A)There is a lack of institutional investors
B)Information on these smaller firms increases the efficiency of the market
C)Some investors are not properly positioned for the segmented market
D)All of the above are reasons

Question

Quizplus · Accepted Answer

Part of the reason for the inefficiency in this segment of the market that allows for superior returns is the absence of institutional traders. This absence means that less information is generated on the smaller firms, and the information that is generated is reacted to in a less immediate fashion. Studies suggest an important linkage between the absence of organized information and superior return potential.

Which of the Following Is NOT a Reason for the Failure