How does the size of a firm as measured by market capitalization tend to affect its...

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Finance

  1. How does the size of a firm as measured by marketcapitalization tend to affect its required rate of return? What isthe historical return on categories of investment – large cap,mid-cap, small cap – and how can this affect investmentstrategies?

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The size of a firm as measured by market capitalization tend to affect its required rate of return Market value of equity is the total dollar value of a companys equity calculated by multiplying the current stock price by total outstanding shares A companys market value of equity is therefore always changing as these two input variables change Market value of equity is a synonym    See Answer
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How does the size of a firm as measured by marketcapitalization tend to affect its required rate of return? What isthe historical return on categories of investment – large cap,mid-cap, small cap – and how can this affect investmentstrategies?

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