Asked by Matthew Cowell on Apr 28, 2024
Verified
Small-company stocks offer a higher return and less risk than large-company stocks.
Large-company Stocks
Shares that represent ownership in large, well-established companies typically characterized by a high market capitalization.
- Distinguish between the concepts of risk and return.
- Understand the performance attributes of stocks from small compared to large companies.
Verified Answer
JT
Juwan TownsendApr 29, 2024
Final Answer :
False
Explanation :
Small-company stocks typically offer higher potential returns but come with higher risk compared to large-company stocks due to factors like less market stability, fewer resources, and less diversified product lines.
Learning Objectives
- Distinguish between the concepts of risk and return.
- Understand the performance attributes of stocks from small compared to large companies.