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Technology Stocks : Citrix Systems (CTXS) -- Ignore unavailable to you. Want to Upgrade?

To: Dinesh who wrote (7780)	4/3/2000 5:06:00 PM
From: Chuzzlewit	Respond to of 9068

There are two kinds of risk. There is non-diversifiable (or market risk) which means that when the market goes down all stocks go down. That's pretty much what happened today with most tech stocks. That risk is measured by the beta. Then there is diversifiable risk -- the kind of business-specific risk you have when a specific business or market segment does poorly. Microsoft or Legato would be examples of this. But with a diversified portfolio you can eliminate much of this risk. Doesn't it [A Random Walk ...] conclude that there is no beating the market? Yes, but that implies that you accept the strong form of the efficient market hypothesis. Under the weaker forms it is possible to beat the market. Value-Line's ranking system seems to consistently beat the market. TTFN, CTC