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Beatrice Thought, "Dru Has a Great Idea, and I Know

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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


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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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