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Technology Stocks : Intel Corporation (INTC)
INTC 34.50+2.6%Nov 21 4:00 PM EST

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To: Tom Chwojko-Frank who wrote (103412)5/15/2000 1:16:00 PM
From: GVTucker  Read Replies (2) of 186894
 
Tom, RE: The at-risk portion of a portfolio can be hedged with the more conservative portion (by buying options for instance) in exchange for lower returns on the conservative part in such a way that there is near zero-risk.

The upside is the at-risk portion may do great.

The downside is that it generates lower returns than if it didn't need to hedge anything. But it's still better than
T-Bills.


Sorry, but if you hedge an equity portfolio so that there is 'near zero risk', your return cannot do much better than T-Bills, and given the transaction costs of such an undertaking, could do worse.
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