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Suppose, during a given year, the return on an equal-weighted portfolio consisting of the 500 stocks in the S&P 500 is higher than the actual
Suppose, during a given year, the return on an equal-weighted portfolio consisting of the 500 stocks in the S&P 500 is higher than the actual return on the S&P 500 (which is value-weighted). This means that, during the year, on average the returns of larger stocks are generally_________ the return of smaller stocks.
A) higher than
B) lower than
C) equal to
D) more volatile than
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