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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 182.03+3.2%3:21 PM EST

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To: Wyätt Gwyön who wrote (116156)3/28/2002 2:24:51 PM
From: carranza2   of 152472
 
Mucho, you might wish to read the following article concerning the various ways of calculating the equity risk premium. The method and the time frame one chooses appear to affect the number significantly.

ibbotson.com

I'm not advocating any specific ERP figure as I really don't know enough about to talk competently about it. However, I can see that the appropriate figure and means of calculating it are issues on which considerable debate has taken place. Given the debate and various methodologies, it's difficult for me to accept any ERP as the appropriate historical norm. It's an interesting field, and I'm still looking at it.

but volatility in and of itself is no measure of long term expected return. expected return can only be derived from fundamental value.

Agreed.
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