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

To: GVTucker who wrote (147104)	11/7/2001 4:49:08 PM
From: AK2004	Read Replies (1) \| Respond to of 186894

GVT re: Huh? forgivr my extra naive approach but here are my thoughts: assuming for a second that we are talking about economic valuation which is by traditional definition is present value of distributable earnings adjusted for risk exposure. Capital fund risk adjustment is determined by type of investments (mostly liquidity) and hedging via other financial instruments or diversification. Diversification is something that would be very much defined by correlation. -1 correlation of between lines (capital vs core) would have the same expected return but lower volatility and hence would command much higher multiple as opposed to lines that are perfectly correlated. While I agree that bv and earnings are real numbers we should not forget about that multiple Regards -Albert