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Product differentiation and systematic risk: theory and empirical evidence

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Figure

Figure 1: Product differentiation
Figure 2: Sequence of Events
Table 1: Regression analysis: R&D and Systematic RiskThis table presents a firm level regression of the average ratio ofR&D expenditures to CapEx, to the average market β, the averageBook to Market Ratio and the average size of the firm (MarketEquity).We hav
Table 3: Volatility, Returns, Profitability R&DThis table describes the characteristics and returns of 5 portfolios of
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