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To: tinkershaw who wrote (5108)11/17/2000 2:45:17 PM
From: kas1  Respond to of 10934
 
A better metric would be to determine an actual risk measurement separate from stock price movement; ie, something that better measures the chances of relative business failure. [...] Common sense indicates to me that as technology companies go, NTAP is a rare breed and much less risky than most.

You have hit upon a very touchy issue: CAPM equates risk with volatility. Some would say that if you're longterm, then your risk isn't really based on volatility. In my mind, predicting risk by looking back at past price volatility (which is how b is calculated) is way too close to TA.

BWDIK, YMMV, etc



To: tinkershaw who wrote (5108)11/17/2000 2:47:11 PM
From: kas1  Respond to of 10934
 
I've never considered volatility to be a measure of risk

Just realized that your message about volatility not being the same as risk pre-empted mine. Ah well. I guess reiteration is a form of flattery. :-)