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Technology Stocks : MRV Communications (MRVC) opinions?
MRVC 9.975-0.1%Aug 15 5:00 PM EST

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To: J. Conley who wrote (8227)4/17/1998 9:10:00 PM
From: michael modeme   of 42804
 
On Variance: What I was refering to was that statistical estimates for earnings inherently have large variances associated with them due to the highly variable underlying stochastic process that describes stock prices. In fact, under a large subset of martingale processes (used to describe stock prices), the variance increases linearly with time. And estimates for earnings which are strongly correlated with stock prices, also increase in time and at any one time have quite large values. Cheers.
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