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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (107640)	8/16/2000 3:28:26 PM
From: GVTucker	Read Replies (1) \| Respond to of 186894

John, RE: Could there be a at least a partial connection between Intel's lower volatility and it's PE expansion over the last year? Inclusion in the Dow leads to lower volatility leads to higher PE???? There have been several studies along these lines over the past several years. Danged if I can think of any of 'em right now. Historically, higher PE is correlated with higher volatility. Inclusion in the Dow is correlated with lower PE for the most part. Relative volatility doesn't usually change, since for the most part any stock added to the Dow is already part of the S&P 500, and there really isn't too much money indexed to the Dow, in contrast to the immense amount of money indexed to the S&P. So I guess, then, that my answer to your questions would be no. At least, IMO.