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Xpat Tech is biotech company. Due COVID-19 increases in volume, profits and stock price have been soaring. However, it was just announced that one of
Xpat Tech is biotech company. Due COVID-19 increases in volume, profits and stock price have been soaring. However, it was just announced that one of the Xpat's promising pharmaceuticals failed a late-stage drug trial. What type of risk is the possibility of a falled drug trial and, according to CAPM should investors care about this risk? Firm-specific risk: No, investors do not care about this risk Systematic risk: Yes, investors care about this risk Firm-specific risk: Yes, investors care about this risk Systematic risk: No, investors do not care about this risk
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