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Which of the Following Best Describes the So-Called Size Effect

Question 18

Multiple Choice

Which of the following best describes the so-called size effect?


A) On average, small cap stocks return more than large cap stocks.
B) On average, large cap stocks return more than small cap stocks.
C) On average, small cap stocks earn abnormal returns.
D) Small cap stocks tend to perform exceptionally well during bull markets.

Correct Answer:

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