1. What is the graph shown below explaining?

Figure 14.10 Annual Stock Returns on Portfolios Sorted by Size (Market Capitalization) from 1926 to 2013 13.4% 11.9% 11.8% 11.6% 11.6% 11.6% 11.1% 11.1% 10.7% Portfolio Small 2 34 5 6 78 Large Historically, the average return on small stocks has been above the average return on large stocks SOURCE: Caculated from Index values provided in Table 7.3 of ibbotson SBB2014 Classic Yebook Chicago Mor prin