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Biotech / Medical : 2012 Biotech Charity Contest

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To: BulbaMan who wrote (364)10/13/2012 8:51:49 AM
From: IRWIN JAMES FRANKEL  Read Replies (2) of 513
 
>> Contest median was up 43.22% YTD (vs. up 50.00% YTD a week ago). In comparison, the Nasdaq Biotech Index was up 36.16% YTD (vs. up 41.33% YTD a week ago)

Thus, the contest median is outperforming NBI by about 20-21%.

Just a guess (no data or even an attempt to look at data): But I suspect that the beta on the contest entries is far higher (more than 21% higher) than the NBI beta. IF SO, it follows that the median contest portfolio is actually under performing the NBI on a beta-adjusted basis.

In contrast, my guess is that the top contestants are outrunning even on a beta adjusted basis.

132% is hard to believe - What are the chances that is luck?

:-)

ij
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