Does a Small Firm Effect Exist when Using the CAPM? Not Since 1980 and Not when Using Geometric Means of Historical Returns

Brian C. Becker, Ph.D. is a Senior Manager in the economics and finance firm of LECG, Inc in Washington, D.C. Dr. Becker, who earned his Ph.D. from The Wharton School of Finance, also continues to serve as a Finance Professor to MBA students. He has spoken to various groups on valuation topics and his articles have been published here as well as other journals.

Ian Gray is an Economist with Economic Consulting Services Inc. in Washington, D.C. Mr. Gray has completed his M.A. and is pursuing his Ph.D. in economics from The Johns Hopkins University. He has significant experience in the valuation area, including publications in this journal.