The capital-asset pricing model (CAPM) generally postulates that there is a risk-return trade-off in financial assets: the assets with a low risk offer a low rate of return, but assets with more risk must offer a higher rate of return to be attractive to investors.
This model is exemplified by returns in the pharmaceutical industry. It is costly and risky to develop and market prescription drugs; it is considerably less risky to bring over-the-counter drugs to market. Hence, this result is not surprising:
In general, analysts say, drug makers make more profit off their prescription products than on over-the-counter medications.This sentence was just a little throw-away in an article quoting a panel of experts who say modern cough medicines don't work. But Ms. Eclectic has a better remedy. Scotch therapy.
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