Studies of investment returns suggest that the stocks of small companies (small cap) generate higher returns than the stocks of larger companies (large cap).

Name: Studies of investment returns suggest that the stocks of small companies (small cap) generate higher returns than the stocks of larger companies (large cap).
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Question

Studies of investment returns suggest that the stocks of small companies (small cap) generate higher returns than the stocks of larger companies (large cap).​

Quizplus · Accepted Answer

This statement is true. Numerous studies have shown that small-cap stocks tend to have higher returns over the long term, although they may also be more volatile and risky.

Studies of Investment Returns Suggest That the Stocks of Small