Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
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 |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
describe market anomalies
CFA® 2025 Level I Curriculum, Volume 3, Module 3.