The Small-Firm Effect is considered a market inefficiency that investors can use to achieve extraordinary returns (abnormal return). Research says that:

a. Smaller companies tend to perform on par with larger companies within and outside of the same industry to which they belong.

b. Smaller companies do not differ in performance from larger companies

c. Smaller companies tend to outperform larger companies within and outside of the same industry to which they belong.

d. Smaller companies tend to underperform larger companies within and outside the same industry to which they belong