The Small-Firm Effect Refers to the Observation That Small Firms

question 7

Multiple Choice

The small-firm effect refers to the observation that small firms' stocks

• A) follow a random walk but large firms' stocks do not.
• B) have earned abnormally low returns given their greater risk.
• C) have earned abnormally high returns even taking into account their greater risk.
• D) sell for lower prices than do large firms' stocks.

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Definitions:

Conventional

Describes something that is based on or in accordance with what is generally done or believed, typical or traditional.

Sexual Orientation

An enduring pattern of emotional, romantic, or sexual attractions to men, women, both sexes, neither sex, or another sex.

Homosexuality

A sexual orientation characterized by attraction, either romantically or sexually, to individuals of the same gender.

Asexuality

A sexual orientation characterized by a lack of sexual attraction towards others.