Monash UniversityFINANCE BFF5270 Which of the following is not true about the small firm premium? Select one: a

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Monash UniversityFINANCE BFF5270

Which of the following is not true about the small firm premium?

Select one:

a.The small firm premium may be partly explained by risk because small firms have greater information assymetries.

b.The small firm premium can be explained by the CAPM.

c.The small firm premium has largely disappeared from the 1980s onwards.

d.The small firm premium is difficult to exploit as it requires investors to buy highly illiquid stocks with his transaction costs.

e. The small firm premium is highly seasonal.