Asked by jailene lobaton on May 02, 2024
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On the basis of historical data from the 1948-2002 period, the return on the average common stock has fluctuated less than the return on the average stock of small firms.
Common Stock
An ownership stake in a corporation that provides the shareholder with voting capabilities and a claim on the company's profits through dividends.
Stock Of Small Firms
Stock Of Small Firms refers to the equity securities issued by companies with a small market capitalization, often characterized by higher volatility and potentially higher growth prospects than larger companies' stocks.
- Draw a distinction between the idea of risk and the concept of return.
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Learning Objectives
- Draw a distinction between the idea of risk and the concept of return.
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