Banz (1981) found that, on average, the risk-adjusted returns of large firms
A) were higher than the risk-adjusted returns of small firms.
B) were the same as the risk-adjusted returns of small firms.
C) were lower than the risk-adjusted returns of small firms.
D) were unrelated to the risk-adjusted returns of small firms.
E) were negative.

Question

Quizplus · Accepted Answer

Banz (1981) discovered that small firms, on average, had higher risk-adjusted returns than large firms, a phenomenon known as the "small firm effect."

Banz (1981) Found That, on Average, the Risk-Adjusted Returns of Large