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14:36 Dec 29, 2016
English to German translations [PRO] Bus/Financial - Investment / Securities
English term or phrase:small firm effect
Evidence against market efficiency is that some market anomalies do appear to be statistically predictable – e.g. the small firm effect and the January effect.
- ***Small firm effect***: Smaller companies tend to have higher risk-adjusted returns than larger companies
- January effect: A result of funds selling underperforming stocks at the end of the year and then buying them back in January
- Sophisticated investors do in fact outperform the market from time to time, suggesting EMH does not hold