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Beatrice thought, "Dru has a great idea, and I know that he has the skills needed to develop the underlying technology. I'll be going out on a limb promoting his idea-risking my position and reputation-but not only is that my job as his manager, it's also something that I believe in." In the development of new technology, Beatrice's role is
Risk-adjusted Returns
A calculation of the profit made from an investment adjusted for the risk taken, allowing for a more accurate comparison across different assets.
Small Firms
Small firms refer to businesses with a relatively smaller size or scale of operations, often characterized by limited revenue, assets, or number of employees compared to larger corporations.
Large Firms
Refers to companies with a high market capitalization, indicating their large size in terms of total asset value and overall market presence.
Reversal Effect
The tendency of poorly performing stocks and well-performing stocks in one period to experience reversals in following periods.
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