On average, small, less well-known companies have lower long-run returns than larger, more well-known companies. True...

On average, small, less well-known companies have lower long-run returns than larger, more well-known companies.

True or False?

Expert Solution

ANSWER DOWN BELOW. FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE.

The size effect:

Research shows,

The companies with small market capitalisation have outperformed historically compared to those companies with larger market capitalisation.

It means as per Research, small, less well-known companies have higher long-run returns than larger, more well-known companies.

Answer: True.

jeff jeffy answered 2 years ago

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