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To: Boca_PETE who wrote (14732)6/24/2000 10:34:00 AM
From: Rillinois  Respond to of 15132
 
Pete from STAMFORD, CT

As I read your post I didn't understand why you quoted 2.7 as the "calculated weighted beta", that is not what I calculated. However, I'm glad you responded because I noticed that I must have made a typing error. The beta for Model Portfolio I should be 1.07 not 1.7. I still don't know where you got 2.7, but maybe you made the same mistake I did.

Anyway, you are correct the calculation excludes the cash position. Similar to the January issue of MARKETIMER the beta of Model Portfolio I was calculated as of 12/31/99 before the asset allocation shift. Neither I nor MARKETIMER included the cash position. There is no doubt that the beta is a lot lower now than it was as of 12/31/99, but the relevant period was when Model Portfolio I was fully invested.

Best Regards.

Rillinois



To: Boca_PETE who wrote (14732)6/24/2000 11:24:00 PM
From: Justa Werkenstiff  Respond to of 15132
 
Pete: Re: ": Clearly, the 2.7 "calculated weighted beta" excludes weighting the ZERO BETA for the 60% CASH PORTION of Portfolio 1. "

I think Rill's post totally confused you as it did him. If I say anything further, Rill might use it as a springboard to discuss this topic more (as he did with your post) even though he has been requested to leave and not to post here anymore without any excuses, explanations or apologies.