Answer: Outperform equities of large-cap companies.

The size effect anomaly refers to the empirical observation that small-cap stocks tend to **outperform** large-cap stocks on a risk-adjusted basis. This phenomenon is attributed to factors such as higher growth potential and lower liquidity premiums associated with smaller companies. Options A and B are incorrect because they contradict the observed outperformance of small-cap equities.

Author: LeetQuiz Editorial Team