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Basic Question 5 of 20
Which of the following are criticisms of the small firm effect (size effect)?
II. The research only included NYSE firms.
III. Firms with low P/E ratios also outperformed the market.
IV. Transaction costs will eliminate all profits.
I. The beta on small firms is underestimated.
II. The research only included NYSE firms.
III. Firms with low P/E ratios also outperformed the market.
IV. Transaction costs will eliminate all profits.
User Contributed Comments 3
| User | Comment |
|---|---|
| johntan1979 | Which research is II referring to? |
| khalifa92 | the one published 1981. |
| zriddle | Banz 1981 |
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Learning Outcome Statements
describe market anomalies
CFA® 2024 Level I Curriculum, Volume 3, Module 3.