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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (30524)	1/21/2000 2:22:00 PM
From: IQBAL LATIF	Respond to of 50167

<<Risk Terms BETA Beta relates the volatility of a security to that of the market as a whole. If an investment moved exactly as the market moved, it would have a beta of 1.0. ALPHA Most commonly used with mutual funds, alpha describes the difference between a fund's actual return and its expected return, given the level of risk it takes, as measured by beta. A fund with a positive alpha has done better than expected, while a fund with a negative alpha has underperformed. STANDARD DEVIATION A statistical measure of the range a fund's price fluctuates within over time compared with its average price. If two funds have the same average return, investors should prefer the one with the lower standard deviation. To calculate it, average your investment's monthly returns over the past 36 months or longer. Then, subtract this average from each of the individual monthly return figures. This tells you how the investment has deviated from its average return. Then, square each figure and sum the results. The square root of this final number is the standard deviation.*(. The correct way to calculate the standard deviation of investments is to average an investment's monthly returns over the past 36 months or longer. Then subtract the average from each of the individual monthly returns. Square each figure, add the results, and divide by 36 or the number of months looked at. The square root of this number is the standard deviation. ) SHARPE RATIO This provides you with a return-per-unit-of-risk measure. To calculate it, take an investment's return minus the 'risk-free' rate, divided by the investment's standard deviation. R-SQUARED Tells you the degree to which an investment's returns rise and fall at the same time as the benchmark it is being compared with. An R-squared of 0 means an investment's returns have no correlation with the benchmark's fluctuations. A 100 reading indicates that they are perfectly matched. Low R-squareds also indicate that the beta of the security is not reliable. MORNINGSTAR RISK Measures a fund's downside volatility relative to that of the average U.S. equity fund. To calculate it, Morningstar adds up the amounts by which a fund fell short of the three-month Treasury bill's return and divides by the total number of months in the rating period.

To: IQBAL LATIF who wrote (30524)	1/21/2000 2:27:00 PM
From: Patrick Slevin	Read Replies (1) \| Respond to of 50167

<Please let me which one is the best.> Could take all weekend to properly sample them all. The Lemon Drop is definitely slated for the first go around. The Cosmo I have had, it's a popular drink with the ladies. Very imaginative list. If you were local I could be your best customer. Why not, I'm the best customer most places I frequent. But don't worry, I won't give any of the gems away. God knows, if I opened my own Martini Bar there wouldn't be enough for the clientele. Best of good fortune with the enterprise.