Which of the following statements does not explain why small capitalised equities provide higher returns than large capitalised equities over long investment horizons? Because small capitalised firms have a smaller capital base to use in economic downturns. Because small capitalised firms have more volatile earnings than large capitalised firms. Because small capitalised equities are traded less than large capitalised equities Because large capitalised firms generally have lower cost of borrowing than small capitalised firms. Because large capitalised firms are better diversified (in terms of markets and products) than small capitalised firms