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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: BGR who wrote (79350)	4/11/2000 5:49:00 PM
From: Michael Bakunin	Respond to of 132070

Let's say I believe markets are efficient and investors rational. Then, of the universe of possible portfolios, investors' rational expectations for risk and return produce produce only one that is tangent to the capital market line from the riskless asset. I'll call that one "the market". Any portfolio tilt, e.g.., towards technology, removes you from the tangent efficient portfolio -- and is an active bet against "the market" and against all other rational investors. Your active bet on technology repudiates my views, that some combination of the riskless asset and the market portfolio dominates. Fie on you, active manager! -g-, -mb