Research around 1980 showed that stocks of small firms had higher average returns than stocks of large

Question:

Research around 1980 showed that of small firms had higher average returns than of large firms. This finding gained much attention, as it seemed to contradict the efficient markets hypothesis. It suggested a simple way to beat the market: purchase only small-firm Can you explain this deviation from market efficiency? (Hint: Think about the behavior in financial markets that leads to efficiency, and why this behavior might not occur.)
b. Would you guess that small have done better than large since 1980? Why or why not? Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...