View all questions & answers for the CWM_LEVEL_2 exam
Section A (1 Mark)
The small-firm-in-January effect refers to the phenomenon that portfolios of small-firm stocks (compared to portfolios of large-firm stocks) have:
A tendency to underperform the stock market.
High returns in December and January.
Abnormal positive returns, primarily in January.
Returns in January that are positively correlated with returns in December
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