Omar Ansari,a Relatively Conservative Investor,received a Prospectus from His Stockbroker

question 25

Multiple Choice

Omar Ansari,a relatively conservative investor,received a prospectus from his stockbroker providing details about XYXY Biotech Company and its planned IPO.XYXY was developing a new and promising type of anti-cancer drug.After studying the prospectus,Omar decided not to invest in the IPO.Which one of the following items of information in the prospectus was most likely NOT a factor in Omar's decision?

• A) XYXY was competing with many other biotech companies.
• B) XYXY's CEO, although not a famous scientist, had a solid background in cancer research.
• C) XYXY's drug might not be approved by the FDA.
• D) XYXY would not be profitable for many years, even if its new drug was approved by the FDA.
• E) XYXY would soon have to return to the capital market for additional financing.

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Definitions:

Effect Size

A quantitative measure of the magnitude of a phenomenon or difference between groups in a statistical analysis.

Group Difference

Disparities or variations observed between two or more groups in a study, often measured statistically.

Group 1

Typically refers to a specific subgroup or batch of subjects in an experimental design or study.

Group 2

Typically refers to the second set or category of data points or participants that are part of a study, experiment, or analysis.