Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/70647
Authors: 
Dwyer, Gerald P.
Barnhart, Cora
Year of Publication: 
2008
Series/Report no.: 
Working Paper, Federal Reserve Bank of Atlanta 2008-21
Abstract: 
We examine the returns to investors in publicly traded stock in new industries. We examine data from the United States on sellers of own-brand personal computers, airlines and airplane manufacturers, automobile manufacturers, railroads, and telegraphs. We find that a relatively small number of companies generate outstanding returns and many firms fail. Firms in new industries typically have high volatility of individual stocks' returns. Compared with indexes for the same period, expected returns of firms are higher for two industries, lower for one industry and roughly the same for two industries. Portfolios of firms in new industries generally have lower Sharpe ratios than the overall market.
Subjects: 
expected returns
options
lottery tickets
returns by industry
JEL: 
G1
G12
N2
N21
N22
Document Type: 
Working Paper

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