Small$-$cap firms$$ returns are generally higher and more volatile than larger firms$$

returns, and smaller firms also generally larger $($greater than $1)$ betas compared with larger

capitalised firm. Can you explain why small$-$capitalised firms are riskier than large$-$capitalised

firms? Further can you explain why small$-$capitalised firms have higher returns? In your

explanation, use your understanding of the nature of small vs larger capitalised firms $($and not

because higher risk $=>$ higher returns and vice versa$).$ Please read the following articles for

better insight