Is there a formula depicting the Size Premium?
I believe the premium is the difference between small cap. equity returns relative to large cap. equity returns.
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Not too sure about a specific formula, but a component of the Fama and French model has a size factor, SMB (small minus big), which accounts for publicly traded companies with small market caps that generate higher returns.
Hope this helps!
Should I always assume the SMB difference will be a negative or positive number?