Historically small firm stocks have earned higher returns than large firm stocks. When viewed in the context of CAPM theory, this suggests that ____________. Group of answer choices small firms are better run than large firms government subsidies available to small firms produce effects that are discernible in stock market statistics small firms must be systematically riskier than large firms small firms are mis-priced
Historically small firm stocks have earned higher returns than large firm stocks. When viewed in the context of CAPM theory, this suggests that ____________. Group of answer choices small firms are better run than large firms government subsidies available to small firms produce effects that are discernible in stock market statistics small firms must be systematically riskier than large firms small firms are mis-priced
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Historically small firm stocks have earned higher returns than large firm stocks. When viewed in the context of CAPM theory, this suggests that ____________.
Group of answer choices
small firms are better run than large firms
government subsidies available to small firms produce effects that are discernible in stock market statistics
small firms must be systematically riskier than large firms
small firms are mis-priced
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