lloveshan6698 lloveshan6698
  • 16-11-2020
  • Business
contestada

What might be reasons that small-company stocks earn higher returns than large-company stocks on average?

Respuesta :

AbsorbingMan AbsorbingMan
  • 17-11-2020

Answer:

small company stocks are less safe and liquid and is more exposed to inflation  

Explanation:

From the period of 1926 to 2010, the small company stock had the highest average return of securities as compared to the company stocks of large company. Some of the reasons for the highest return on average of a small company stock than the small company stock are :

1. The small company stocks are less safe.

2. The small company stocks are less liquid.

3.They are more exposed to the inflation.

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