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Strategies & Market Trends : Value Investing

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To: Dennis 3 who wrote (48034)5/18/2012 12:13:41 PM
From: Jurgis Bekepuris  Read Replies (1) of 78464
 
TLB - If you use Graham arbitrage calculator and assume 50/50 chance and a drop to $1 on failure to accept the deal, the expected return is negative. So either the chance has to be higher or the expected drop should be less for it to be a buy. If you keep 50/50 chance, expected drop has to be no worse than to $2 for a good return... I guess I don't like these numbers, so I'll skip. :)
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