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Technology Stocks : Intel Corporation (INTC)
INTC 37.28-0.6%3:59 PM EST

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To: GVTucker who wrote (147108)11/7/2001 5:05:38 PM
From: AK2004  Read Replies (1) of 186894
 
GVT
re: Correlation is important when deciding what securities to include in your portfolio and how to weight those securities.
optimization is only part of the game
re: Yes, in a theoretical world that particular correlation can affect things, but in reality, it is so far down the importance scale to be essentially irrelevant.
this is the other part. Rating agency pay a lot of attention to portfolio composition of financial companies which should not be a secret to you. Once intel's capital gains became recurring it crossed into financial arena and would be treated by the same rules. Capital gains and losses are sufficiently significant part of earnings to justify that.
I am surprised that in your company portfolio composition is secondary - if I interpret your real world statement correctly.
Regards
-Albert
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