Question: Given below is the time-series average returns and standard deviations to the size premiums across six regions/countries based on sample size of 373 months. Your

Given below is the time-series average returns and standard deviations to the size premiums across six regions/countries based on sample size of 373 months. Your task is to consider the reward to risk ratios calculated as premium divided by standard deviation. Over the sample period and regions/countries considered, do you think that size matters in investment strategy? Provide explanation for your answer.

Size Premium Across Region
Global Developed Emerging Europe Japan Asia-Pacific Excluding Japan North America
Average monthly return 0.597343276 0.019613318 0.081430186 0.060903206 0.059413948 -0.209093935 0.060166855
SD.S 4.264251269 1.969621951 2.218465022 2.166158911 3.06082972 2.906969947 3.048114042
SD.P 4.258405822 1.966921988 2.215423944 2.163189535 3.056633927 2.902985066 3.04393568

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