Finance School of management Risk and resource allocation a scientist discovers a new drug designed to treat the common cold She requires $1,000,000 to develop, test and produce it At this stage, the drug has a small probability of commercial success Using her own money or setting up a firm? uesTc 2424 Finance School of Management Risk and Resource Allocation ❖ A scientist discovers a new drug designed to treat the common cold. ❖ She requires $1,000,000 to develop, test and produce it. ❖ At this stage, the drug has a small probability of commercial success. ❖ Using her own money or setting up a firm?