What characteristic of small-cap stocks makes them potentially suitable for investors seeking high returns? Option: Low volatility, Government backing, Fixed dividends, Potential for high growth

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What characteristic of small-cap stocks makes them potentially suitable for investors seeking high returns?

Low volatility

Government backing

Fixed dividends

Potential for high growth

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What makes small-cap companies potentially attractive for growth-oriented investors?

Guaranteed dividends

Higher organic growth rate compared to large-cap companies

Established market presence

Low risk of bankruptcy

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Large-cap stocks are often considered to have which of the following characteristics?

High Growth Potential

High Volatility

Significant Risk

Moderate Returns

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Why might an investor choose mid-cap stocks over large-cap stocks?

For their established market presence

For their potential for higher growth

For their guaranteed dividend payouts

For their lower volatility

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What is a key drawback of investing in large-cap stocks?

Low Dividend Payouts

Lack of Liquidity

High Volatility

Limited Growth Potential

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Which of the following is a significant risk associated with small-cap stocks?

Low expense ratios

Guaranteed returns

High volatility

Immunity to market fluctuations