Question

. Small firms have tended to earn abnormal returns primarily in __________.A. the month of JanuaryB. the month JulyC. the trough of the business cycleD. the peak of the business cycle

Answer 1

Answer: The month of January

Explanation:

It is as a result of January effect on small firms. Whereby small cap investments tend to have a relative increase in stock price during this period making it's funds more attractive to investors resulting in abnormal returns on investments within this period.