Purchase Solution

Behavioral Phenomena

Not what you're looking for?

Ask Custom Question

On May 20, 2004, The Wall Street Journal ran 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 an 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 start-ups hoping to earn a profit when these firms go public. Discuss whether there are any behavioral phenomena involved in the issues raised in the article.

Purchase this Solution
Solution Summary

This response presents a brilliant discussion on Behavioral Phenomena

Solution Preview

Behavioral Phenomena

The issues raised in this article are that even thought the return to investment in the Biotechnology sector between 1981 and 2004 lies below the return from holding Treasure bill, US biotechnology firms have succeeded in issuing almost $4 billion in new equity. There are several behavioral phenomena involved in this. First there is a strong cognitive bias that seems to create this phenomenon. There are investors that wait for ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
Recent Feedback
  • "I read your comments, and thank you for this feedback. Do I need to find other studies that applied this methodology Ive used? That's where I'm stuck at."
  • "Thank you kindly sir. "
  • "Excellent and well explained. --Thank you kindly. "
  • "Awesome notes. I appreciate you."
  • "I have the follow-up project and I will assign that to you very soon. "
Purchase this Solution
Free BrainMass Quizzes
Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

View More Free Quizzes
Related BrainMass Solutions

  • “Behavioral Finance at JPMorgan” Case Analysis

    Behavioral phenomena in JP Morgan: Aside from the behavioral biases identified in the case study, these are, overconfidence, loss aversion, recency, and anchoring, there are other behavioral phenomena that JP Morgan also emphasizes in analyzing investor

  • Explain how behavioral phenomena may help effectiveness

    The main part of your job is to explain how behavioral phenomena may help the attendees to become more effective decision makers.

  • Statistics

    To explain specific phenomena in the behavioral sciences, data is collected and then used to draw conclusions regarding the topic under study. The data can then be used to make predictions about real- world phenomena.

  • A difficult theory to research and test

    Theories are an attempt to explain a certain class of phenomena by deducing them as necessary consequences or other phenomena regarded as more primitive and less in need of explanation.

  • Nursing Theory

    Again, the main competing arguments put forward by Jacox are on the one hand that there are no phenomena or activities peculiar to nursing around which nursing theory can develop, and on the other hand that there is a need for a specified body of knowledge

  • Approaches to qualitative and quantitative research

    Some examples of this form include surveys, experiments, and quasi-experiments, as well as closed-ended survey items, rating scales, measurable behavioral responses, etc.

  • Generalization Necessary Effective Behavior Modification Program

    For example, the effectiveness of generalization strategies is demonstrated in reducing the frequency and intensity of excessive behavior with handicap persons based on the phenomena of stimulus or response generalization.

  • Relationship between nanotechnology and surface phenomena

    87579 Relationship between nanotechnology and surface phenomena A. In what ways do nanotechnology and surface phenomena overlap? b. What is the relationship between and nanotechnology and surface phenomena? c.

  • Random Walk Model

    Research in behavioral finance has shown that some phenomena, for example market trends, might in some cases contradict the random walk hypothesis. Profs. Andrew W. Lo of MIT and A.

View More Related Solutions