2. Compare the price-to-earnings (P/E) ratios for these industries. Why might biotech have a negative P/E ratio

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2. Compare the price-to-earnings (P/E) ratios for these industries. Why might biotech have a negative P/E ratio in some periods? Why is its P/E ratio (when positive)

so much higher than that of water utilities? Again, think in terms of where these industries stand in their life cycle.

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Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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2. Compare the price-to-earnings (P/E) ratios for these industries. Why might biotech have a negative P/E ratio

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Investments

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