More evidence that small company stocks have additional risks

Business Valuation UpdateVol. 7 No. 10
October 2001
Shannon P. Pratt, CFA, ARM, ABAR, FASA, MCBA, CM&AA
discount rate, income approach, ibbotson associates, small stock premium, mergerstat/shannon pratt's control premium study (CPS)


This column provides further evidence that the "size effect" is real. That is, smaller companies are , on average, riskier and therefore investors do require higher expected returns to invest in th ...