Abstract

https://ssrn.com/abstract=1296128
 
 

References (27)



 
 

Citations (1)



 


 



Returns to Investors in Stocks in New Industries


Gerald P. Dwyer


Clemson University; Australian National University (ANU) - Centre for Applied Macroeconomic Analysis (CAMA)

Cora Barnhart


Palm Beach Atlantic University - Rinker School of Business

September 1, 2008

Federal Reserve Bank of Atlanta Working Paper 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.

Number of Pages in PDF File: 37

Keywords: expected returns, options, lottery tickets, returns by industry

JEL Classification: G1, G12, N2, N21, N22


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Date posted: November 9, 2008  

Suggested Citation

Dwyer, Gerald P. and Barnhart, Cora, Returns to Investors in Stocks in New Industries (September 1, 2008). Federal Reserve Bank of Atlanta Working Paper 2008-21. Available at SSRN: https://ssrn.com/abstract=1296128 or http://dx.doi.org/10.2139/ssrn.1296128

Contact Information

Gerald P. Dwyer (Contact Author)
Clemson University ( email )
Department of Economics
Clemson University
Clemson, SC 29634
United States
Australian National University (ANU) - Centre for Applied Macroeconomic Analysis (CAMA) ( email )
ANU College of Business and Economics
Canberra, Australian Capital Territory 0200
Australia
Cora Barnhart
Palm Beach Atlantic University - Rinker School of Business ( email )
901 S. Flagler Drive
West Palm Beach, FL 33401
United States
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