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Historically, small-firm stocks have earned higher returns than large-firm stocks. In risk-return, efficient diversification, and multi-factor model analysis, this suggests that small firms are better
Historically, small-firm stocks have earned higher returns than large-firm stocks. In risk-return, efficient diversification, and multi-factor model analysis, this suggests that small firms are better run than large firms small firms are not being accurately represented in the data government subsidies available to small firms produce effects that are discernible in stock market statistics small firms carry higher systematic risk than large firms
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