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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: DavidD who wrote (12652)	11/28/1998 7:11:00 AM
From: Reginald Middleton	Respond to of 74651

Yahoo has a very high correlation of market value added to revenues, over Cisco exhibits similar behavior over the last 44 quarters. It varies from industry to industry and sometime even company to company. I can't link to it since I don't have it memorized and the site is over 1,000 pages. I'm afraid I'm going to have to ask you to look. Thier is a form that allows you to run your own correlation analyses as well for those academics that have a problem with the way I did it.

To: DavidD who wrote (12652)	11/28/1998 7:16:00 AM
From: Reginald Middleton	Read Replies (1) \| Respond to of 74651

<Also, I always said the risk for MSFT losing equity was small, but REAL as well. I am not able to quantify the risk adjusted return for this unlikely event because I can't make a reasonable assumption of the likelihood the stock nose dives. Never by a bio-tech stock just before a FDA review - one can't reasonably quantify the response of the all important panel> Over time, the market prices this risk into the funding mechanisms. You said you were well versed in finance, well how does the market quantify the risk of treasuries, investment grade corporates, high yield bonds, and emerging market debt? Yoou extrapolate the markets risk premium for equities in a similar fashion.