Which of the Following Are Characteristics of Small Cap Stocks

question 5

Multiple Choice

Which of the following are characteristics of small cap stocks?
I. strong balance sheets
II. annual revenues less than $250 million
III. potential for high returns along with high risk
IV. potentially dramatic changes in their earnings

• A) III and IV only
• B) II and III only
• C) I, III and IV only
• D) II, III and IV only

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Definitions:

Determine Belief

The process of identifying or establishing what one accepts as true or real, often in the context of preparing for negotiations or critical thinking.

Recency Effect

A cognitive bias that causes people to remember the most recently presented information best, which can influence decision-making and opinions.

Influence Tactics

Strategies or methods used to persuade or impact others' decisions, behaviors, or perceptions in order to achieve a desired outcome.

Norm of Reciprocity

A social standard that expects individuals to respond to others with the same behavior they have received.