Between 1926 and 2005, the return on small company stocks on average exceeded the return on large company stocks.

Question

Quizplus · Accepted Answer

This statement reflects the well-established "small cap premium" phenomenon in finance, which refers to the tendency of small company stocks to outperform large company stocks over the long term. Empirical studies have found that, on average, small-cap stocks have delivered higher returns than large-cap stocks over various periods of time, although this trend is not guaranteed and may vary depending on market conditions and other factors.

Between 1926 and 2005, the Return on Small Company Stocks