Asked by Lizbeilyn Ozoria on Apr 27, 2024
Verified
Small stocks have grown faster than the rate of inflation over the last 50 years.
Rate Of Inflation
The annual percentage rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.
- Recognize the patterns of inflation over time concerning various investment types.
- Acquire knowledge on the performance traits of small versus large company stocks.
Verified Answer
TC
Tanner CereghinoApr 28, 2024
Final Answer :
True
Explanation :
Historically, small-cap stocks have tended to outperform the broader market over long periods, including growing at a rate that exceeds inflation, due to their potential for higher growth compared to larger, more established companies.
Learning Objectives
- Recognize the patterns of inflation over time concerning various investment types.
- Acquire knowledge on the performance traits of small versus large company stocks.
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