Technology Ventures: From Idea to Enterprise 4th Edition by Thomas Byers,Richard Dorf ,Andrew Nelson

Exercise 4

Verify the empirical validity of Figure 7.9. Research the following questions using your favorite finance website or newspaper. What was the previous year's risk-free T-bill rate? What rate of return has the S P 500 generated over the last year? Select a start-up that recently has gone public and determine its rate of return in the last year (or since the IPO).
FIGURE 7.9 Return-versus-risk model for a new venture.