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To: Victor Lazlo who wrote (34843)1/14/1999 12:07:00 AM
From: BGR  Read Replies (1) | Respond to of 164684
 
Victor,

Bonds and money market funds most probably have lower beta than Drenan's (assuming that he has an all equity fund), thus have lower risk and return. Would you consider Drenan's fund overvalued wrt bonds or money market? As you have stated in your post, it is all a matter of personal preference which is best left to individual choices. Too often I see professional money managers state that a stock is insanely priced, whereas in reality what they mean is that the stock has a higher beta than what they would like to own. They make a subjective judgement in the guise of an objective one which is very misleading IMHO.

-Apratim.