It is often said that small capitalised firms are riskier than large capitalised firms, and...

80.2K

Verified Solution

Question

Accounting

It is often said that small capitalised firms are riskier than large capitalised firms, and that results in higher volatility and higher betas for small firms compared with large firm. Can you explain this phenomena by your understanding of the nature of small vs larger capitalised firms, as well as through the Dividend Discount Model (DDM).

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students