hence, might be seen in such markets. But, at the same time, they are also prone to economic downtrends and market volatility. Therefore, such small-cap stocks might bring out a lot of returns but at a riskier proposition and thus it suits more aggressive investors wanting to get maximum growth from investments.
Risk and Return
The three categories reveal the risk-return trade-off. Large-cap stocks tend to be less volatile and consistent in their returns and thus would be safer to an investor with a risk aversion factor. They are proven over time in the delivery of stable performance. They, however take relatively more time to grow in comparison to the smaller companies.

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