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To: jjs_ynot who wrote (40290)	4/18/1998 6:44:00 PM
From: donald sew	Respond to of 58727

Dave, That's a good question as to exact BETA factor, but I just dont know. Following the indexes, I get the strong feeling that the NDX/XBD/MSH/SOX probably has the highest BETA's. Overall, think it is quite obvious that the HiTechs as a whole has a larger BETA than the OEX. On fairly volitile days the NDX can move 30+ points in a day, and on several occassions it has done around 40 and once (last October) it moved over 100 points. On many occassions the MSH moves about 1/2 of the amount of the NDX, or even more, so it can easily move 10-15 in a day. On Mar 5, the NDX dropped about 57 points on that one day and on APRIL 6-7 the NDX dropped about 60 point during those 2 days. Keep in mind that such action was during this extreme rally. To compare the MSH dumped 21 points on MAR 5, and 36 points on April 6-7. For your reference the NDX is a bit more than double the size of the MSH. Seeya

To: jjs_ynot who wrote (40290)	4/18/1998 7:32:00 PM
From: Patrick Slevin	Read Replies (2) \| Respond to of 58727

I am still unsure as to this question on beta on an index. I have asked Peter to define the question precisely as to how beta works with respect to an index option and I pass it on...in print...to an options specialist and he says questions of a nature that deal with options on an index with respect to beta make no sense. I do not wish to hold myself forth as an expert in this area. After three times, I still cannot relay the answer very well. He says that asking about beta on an index on an option makes no sense, because the Index creates the beta for the stocks in the index and to derive an beta for the index then the alpha is zero and the beta is one and therefore the beta becomes the delta. This is because the beta is one so the you must multiply one times the delta. He has patiently explained this to me three times. I can't keep it in my head long enough to find a pencil. So I wish you fellows luck with this.