Small firms have tended to earn abnormal returns primarily in ________.

A) the month of January
B) the month July
C) the trough of the business cycle
D) the peak of the business cycle

Abnormal Returns

Financial gains or losses that deviate from the expected market return, indicating better or worse performance than the market average.

Business Cycle

The natural fluctuation of the economy between periods of expansion (growth) and contraction (recession) over time.