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

question 30

Multiple Choice

Banz (1981) found that, on average, the risk-adjusted returns of small firms

• A) were higher than the risk-adjusted returns of large firms.
• B) were the same as the risk-adjusted returns of large firms.
• C) were lower than the risk-adjusted returns of large firms.
• D) were unrelated to the risk-adjusted returns of large firms.
• E) were negative.

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Definitions:

Important Factors

Elements or conditions that are significant or crucial in achieving an outcome or understanding a situation.

Direction of the Relationship

Refers to the way two variables relate to each other in a study, indicating whether an increase or decrease in one variable results in an increase or decrease in the other.

Correlation Coefficient

A numerical indicator that shows how much two or more variables move in unison.

Descriptive Research

A type of research that aims to observe, describe, and document aspects of a situation as it naturally occurs.