Which of the Following Is True Regarding the Size Anomaly

question 56

Multiple Choice

Which of the following is true regarding the size anomaly?

• A)As much as 50% of small cap outperformance is associated with the January effect.
• B)Small cap stocks underperform large cap stocks in recent years.
• C)Small cap stock outperformance is a NASDAQ phenomenon,not NYSE.
• D)Small cap stock outperformance is unaffected by micro-cap,commission,or liquidity (i.e.,bid-ask spread)concerns.

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Definitions:

Negative Reinforcement

A process in operant conditioning where a response is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.

Primary Reinforcement

An activity whose reinforcing properties are innate.

Positive Reinforcement

An event whose occurrence increases the frequency of the behavior that precedes it.

Conditioning Contrast

A phenomenon in classical and operant conditioning where the strength of a conditioned response changes when the reinforcement or punishment is changed in amount or type.