Work by Amihud and Mendelson (1986, 1991)

question 29

Multiple Choice

Work by Amihud and Mendelson (1986, 1991)

• A) argues that investors will demand a rate of return premium to invest in less liquid stocks.
• B) may help explain the small firm effect.
• C) may be related to the neglected firm effect.
• D) may help explain the small firm effect and may be related to the neglected firm effect.
• E) All of the options are correct.

---

Definitions:

Principles

are fundamental truths or propositions that serve as the foundation for a system of belief, behavior, or reasoning.

Proposal

A formal suggestion or plan put forward for consideration by others, especially in a professional or business context.

Report

A structured document or presentation that provides information or findings on a specific topic, often resulting from research or analysis.

Introduction

The initial section of a document or speech that sets the context, outlines the purpose, and previews the content to follow.