Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

On May 20, 2004, The Wall Street Journalran a front page story entitled "Biotech's Dismal Bottom Line: More Than $40 Billion in Losses." The article makes several points. First, the majority of biotechnology firms have produced losses, with the result that the return to investments in the biotechnology sector between 1981 and 2004 lies below the return from holding Treasury Bills. At the same time, a few biotechnology firms, such as Amgen and Genentech have been spectacularly successful. The article quotes one investor who likens biotechnology stocks to a lottery. Despite its track record, in 2003 U.S. biotechnology firms succeeded in issuing almost $4 billion in new equity. The article mentions that venture capitalists also provided funding to biotechnology startups hoping to earn a profit when these firms go public. Discuss whether there are any behavioral issues involved in the issues raised in the article.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M940451

Have any Question? 


Related Questions in Basic Finance

Strategywhat is an aggressive financing strategy what are

Strategy What is an aggressive financing strategy? What are components of aggressive finance strategies? What is the difference between the aggressive and conservative financing models? Under what circumstances would you ...

In addition to the key words you should be able to define

In addition to the key words, you should be able to define each of the following terms: literature search subject words database abstract PsycINFO PsycArticles title introduction method section results section discussion ...

Explain what we mean when we say that the binomial model is

Explain what we mean when we say that the binomial model is a discrete time model and the Black-Scholes-Merton model is a continuous time model? Explain the difference between a normal and a lognormal distribution as it ...

1 why would a companys costs of manufacturing and

1. Why would a companys costs of manufacturing and procurement tend to increase as the firm changes from an MTP to an MTO strategy? Why would inventory costs tend to decrease? 2. How does a firms marketing strategy impac ...

Class investmentstopic term structure of interest rates

CLASS: Investments TOPIC : Term Structure of Interest Rates: Expectations Theory: Forward and SpotRates. QUESTION: Given the yield on a 7 year zero-coupon bond is 7%, yield on a 2 year strip is 5%, and forward two-year r ...

1 describe how structural equations modeling works2

1. Describe how structural equations modeling works. 2. Distinguish between latent variable modeling and path analysis as types of structural equations modeling.

1corporate share repurchase programs are often touted as a

1. Corporate share repurchase programs are often touted as a benefit for shareholders. But Robert Gabele, director of insider research for First Call/ Thomson Financial, noted that many of these programs are undertaken s ...

1 what is an interaction2 how many interactions can be

1. What is an interaction? 2. How many interactions can be tested in a 2 x 2 design? In a 3 x 3 design? In a 2 x 2 x 3 design? 3. Why do researchers use expericorr designs?

1 why do savers with small amounts to invest rarely make

1. Why do savers with small amounts to invest rarely make loans directly to individuals or firms? 2. What are transactions costs? What are information costs? 3. What are financial intermediaries? Why are financial interm ...

1 how is a hazard different from a disaster2 what is the

1. How is a hazard different from a disaster? 2. What is the most frequent and widespread disaster-causing hazard? 3. What scale is commonly used to describe the effects of earthquakes? 4. How are earthquakes measured?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen