LAUSR

Abstract The risk associated with nanomaterials has always been a concern for investors as a part of their decision-making process. To date, the concept of risk-return has never been used for nanomaterials. This paper takes a step in this direction by proposing a process based on the risk and returns of nanomaterials related to cancer treatment. The purpose is threefold: (1) to provide the relationship between risk levels and potential returns in terms of using nanomaterials to prolong life, (2) to form the risk-return profile for the specific group of nanomaterials and (3) to identify the most potent case in a group. The methodology includes two parts. The first part uses the dose-response model to develop a model between the risk of a toxic dose consumed by a patient and the probability of fatal injuries. The second part presents the different risk return curves for the various materials through an efficient theoretical frontier. In cases where the nanomaterial offers both low risk and high returns, the benefits are likely to be more profound. Therefore, if a risk-return profile is introduced, it is likely to play a supporting role to decision-making.