Historical returns have generally been __________ for stocks of small firms as/than for stocks of large firms.
A) the same
B) lower
C) higher
D) There is no evidence of a systematic relationship between returns on small firm stocks and returns on small firm stocks

Question

Quizplus · Accepted Answer

Historical evidence suggests that small firms tend to have higher returns than large firms. This is often attributed to small firms being riskier and having greater potential for growth, which can result in higher returns for investors. However, it is important to note that this relationship may not hold true in all situations and there can be variations in returns for different types of small and large firms.

Historical Returns Have Generally Been __________ for Stocks of Small