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To: Broken_Clock who wrote (4831)	12/11/1997 2:15:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 95453

dlucas, I'm in the following stock (and have been for some time): ESV, GLM and VRC. I have not sold any. MPT = Modern Portfolio Theory. MPT basically holds that the short-term direction of the market is unknowable, and the best way to achieve good returns is to buy and hold a well-diversified portfolio. It further holds that the risk/rate of return is proportional to the beta of the portfolio (there is excellent evidence for this). If you want a good overview of MPT I suggest reading Burton Malkiel's "A Random Walk Down Wall Street". This book summarizes a lot of academic thinking concerning the stock market, and is virtually required reading in every MBA program in the country. Strict adherence to MPT would lead you to conclude that every stock properly reflects all of the information (public and private) about a business. However, I believe that the weak form of the efficient market hypothesis more adequately reflects the way information travels through the market. Hope this helps! Regards, Paul