Q. There is evidence that small stocks and value stocks perform better over the long term than the market averages. What are some logical reasons for this?

Do a bit of reading in this area, and you can come to your own conclusion as to whether there really is evidence that small and value stock perform better over the long term.

Mozes, H. A., & Steffens, J. L. (2015). Getting more value out of the value factor. Journal of Investing, 24(4), 8-16. 

Fama, E. F., & French, K. R. (2018). Volatility lessons. Financial Analysts Journal, 74(3), 42-53.