Which of the following is least likely to be a rationale for investing in small cap stocks? | A) | Smaller firms are more likely to be underpriced than larger cap stocks with greater coverage. |
| | B) | Small-cap stocks are likely to have higher growth in the future. |
| | C) | Higher returns are more likely when starting from a smaller stock price base. |
| D) | The higher betas for small cap stocks indicate that their future returns should be higher. |
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Answer and Explanation
Although small-cap stocks may have a higher beta, this is not given as a rationale for investing in them. The other three responses indicate the most common rationales for investing in these stocks.
[此贴子已经被作者于2008-9-18 17:22:00编辑过] | 
发表于 2008-9-16 10:10
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