The Anomaly That Recognises That Returns on Small Stocks Tend

question 9

Multiple Choice

The anomaly that recognises that returns on small stocks tend to be larger than returns on large stocks is known as the:

• A)Size effect
• B)Return effect
• C)Timing effect
• D)Day- end effect
• E)Hurdle effect

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Definitions:

Private Enterprise

A business owned by private individuals or groups, operating for profit and not controlled by the state.

Consolidated Financial Statements

Combined financial documents that present the overall financial position of a parent company and its subsidiaries as one entity.

Cost Basis

The original value of an asset for tax purposes, usually the purchase price, which is used to calculate capital gains or losses when the asset is sold.

Subsidiaries

Companies that are controlled by another company, known as the parent company, through ownership of more than half of the voting stock or through other mechanisms of control.