Would you describe small cap stocks as a stable or volatile data set?  Why?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question

 Would you describe small cap stocks as a stable or volatile data set?  Why?

1961
26.89%
29.51%
1962
-8.73%
-16.83%
1963
22.78%
18.67%
1964
16.51%
16.52%
1965
12.45%
34.99%
1966
-10.05%
-7.10%
1967
23.99%
63.88%
1968
11.08%
31.82%
1969
-8.49%
-22.16%
1970
4.03%
-9.87%
1971
14.32%
20.32%
1972
18.98%
5.58%
1973
-14.67%
-34.35%
1974
-26.46%
-25.87%
1975
37.21%
60.92%
1976
23.85%
50.74%
1977
-7.18%
17.08%
1978
6.57%
16.63%
1979
18.42%
46.26%
1980
32.41%
33.10%
1981
-4.91%
3.05%
1982
21.41%
29.39%
1983
22.51%
28.82%
1984
6.27%
-2.24%
1985
32.17%
32.84%
1986
18.47%
8.77%
1987
5.23%
-6.89%
1988
16.81%
24.76%
1989
31.49%
19.23%
1990
-3.10%
-17.79%
1991
30.47%
48.65%
1992
7.63%
17.38%
1993
10.07%
18.30%
1994
1.32%
-1.52%
1995
37.58%
29.48%
1996
22.96%
18.03%
1997
33.36%
28.02%
1998
28.58%
0.52%
1999
21.04%
32.91%
2000
-9.10%
-11.03%
2001
-11.89%
13.16%
2002
-22.10%
-21.60%
2003
28.69%
51.55%
2004
10.88%
21.01%
2005
4.91%
6.77%
2006
15.80%
16.20%
2007
5.49%
0.02%
2008
-37.00%
-37.64%
2009
26.46%
44.14%
2010
15.06%
30.46%
2011
2.11%
-3.99%
2012
16.00%
18.18%
Transcribed Image Text:1961 26.89% 29.51% 1962 -8.73% -16.83% 1963 22.78% 18.67% 1964 16.51% 16.52% 1965 12.45% 34.99% 1966 -10.05% -7.10% 1967 23.99% 63.88% 1968 11.08% 31.82% 1969 -8.49% -22.16% 1970 4.03% -9.87% 1971 14.32% 20.32% 1972 18.98% 5.58% 1973 -14.67% -34.35% 1974 -26.46% -25.87% 1975 37.21% 60.92% 1976 23.85% 50.74% 1977 -7.18% 17.08% 1978 6.57% 16.63% 1979 18.42% 46.26% 1980 32.41% 33.10% 1981 -4.91% 3.05% 1982 21.41% 29.39% 1983 22.51% 28.82% 1984 6.27% -2.24% 1985 32.17% 32.84% 1986 18.47% 8.77% 1987 5.23% -6.89% 1988 16.81% 24.76% 1989 31.49% 19.23% 1990 -3.10% -17.79% 1991 30.47% 48.65% 1992 7.63% 17.38% 1993 10.07% 18.30% 1994 1.32% -1.52% 1995 37.58% 29.48% 1996 22.96% 18.03% 1997 33.36% 28.02% 1998 28.58% 0.52% 1999 21.04% 32.91% 2000 -9.10% -11.03% 2001 -11.89% 13.16% 2002 -22.10% -21.60% 2003 28.69% 51.55% 2004 10.88% 21.01% 2005 4.91% 6.77% 2006 15.80% 16.20% 2007 5.49% 0.02% 2008 -37.00% -37.64% 2009 26.46% 44.14% 2010 15.06% 30.46% 2011 2.11% -3.99% 2012 16.00% 18.18%
Date
Large
Small
1926
11.61%
-0.42%
1927
37.48%
29.12%
1928
43.61%
30.57%
1929
-8.41%
-39.25%
1930
-24.90%
-38.98%
1931
-43.35%
-50.40%
1932
-8.20%
-0.77%
1933
53.97%
117.52%
1934
-1.43%
19.90%
1935
47.66%
58.60%
1936
33.92%
51.01%
1937
-35.02%
-48.74%
1938
31.14%
40.29%
1939
-0.42%
3.60%
1940
-9.78%
-5.88%
1941
-11.58%
-9.34%
1942
20.33%
27.05%
1943
25.91%
57.28%
1944
19.73%
43.23%
1945
36.41%
64.18%
1946
-8.07%
-11.26%
1947
5.70%
-2.96%
1948
5.51%
-4.13%
1949
18.79%
21.27%
1950
31.74%
36.55%
1951
24.02%
15.47%
1952
18.35%
9.66%
1953
-0.98%
-2.90%
1954
52.62%
57.47%
1955
31.54%
20.78%
1956
6.56%
6.53%
1957
-10.79%
-17.83%
1958
43.37%
61.86%
1959
11.98%
17.26%
1960
0.46%
-3.39%
1961
26.89%
29.51%
1962
-8.73%
-16.83%
1963
22.78%
18.67%
1964
16.51%
16.52%
1965
12.45%
34.99%
1966
-10.05%
-7.10%
1967
23.99%
63.88%
1968
11.08%
31.82%
1969
-8.49%
-22.16%
1970
4.03%
-9.87%
1971
14.32%
20.32%
1972
18.98%
5.58%
1973
-14.67%
-34.35%
1974
-26.46%
-25.87%
1975
37.21%
60.92%
1976
23.85%
50.74%
1977
-7.18%
17.08%
Transcribed Image Text:Date Large Small 1926 11.61% -0.42% 1927 37.48% 29.12% 1928 43.61% 30.57% 1929 -8.41% -39.25% 1930 -24.90% -38.98% 1931 -43.35% -50.40% 1932 -8.20% -0.77% 1933 53.97% 117.52% 1934 -1.43% 19.90% 1935 47.66% 58.60% 1936 33.92% 51.01% 1937 -35.02% -48.74% 1938 31.14% 40.29% 1939 -0.42% 3.60% 1940 -9.78% -5.88% 1941 -11.58% -9.34% 1942 20.33% 27.05% 1943 25.91% 57.28% 1944 19.73% 43.23% 1945 36.41% 64.18% 1946 -8.07% -11.26% 1947 5.70% -2.96% 1948 5.51% -4.13% 1949 18.79% 21.27% 1950 31.74% 36.55% 1951 24.02% 15.47% 1952 18.35% 9.66% 1953 -0.98% -2.90% 1954 52.62% 57.47% 1955 31.54% 20.78% 1956 6.56% 6.53% 1957 -10.79% -17.83% 1958 43.37% 61.86% 1959 11.98% 17.26% 1960 0.46% -3.39% 1961 26.89% 29.51% 1962 -8.73% -16.83% 1963 22.78% 18.67% 1964 16.51% 16.52% 1965 12.45% 34.99% 1966 -10.05% -7.10% 1967 23.99% 63.88% 1968 11.08% 31.82% 1969 -8.49% -22.16% 1970 4.03% -9.87% 1971 14.32% 20.32% 1972 18.98% 5.58% 1973 -14.67% -34.35% 1974 -26.46% -25.87% 1975 37.21% 60.92% 1976 23.85% 50.74% 1977 -7.18% 17.08%
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