Competion of the efficacy testing means the dru...

Competion of the efficacy testing means the drug wi be on the market soon.
Suppose the foowing events actuay occurred:
a.  The government announced that rea GNP grew 2.3 percent during the previous
quarter.
b.  The government announced that infation over the previous quarter was 3.7 percent.
c.  Interest rates rose 2.1 percentage points.
d.  The president of the firm died suddeny of a heart attack.
e.  Research resuts in the efficacy testing were not as strong as expected. The drug
must be tested for another six months, and the efficacy resuts must be resubmit-
ted to the FDA.
f.  Lab researchers had a breakthrough with another drug.
g.  A competitor announced that it wi begin distribution and sae of a medicine
that wi compete directy with one of Lewis-Striden’s top-seing products.
Discuss how each of the actua occurrences affects the return on your Lewis-Striden
stock. Which events represent systematic risk? Which events represent unsystematic
risk?


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