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To: Chuzzlewit who wrote (94173)2/2/1999 5:41:00 PM
From: SecularBull  Read Replies (1) | Respond to of 176387
 
What are your conclusions about CNPEG?

Thanks.

LoD



To: Chuzzlewit who wrote (94173)2/2/1999 5:49:00 PM
From: Lee  Read Replies (2) | Respond to of 176387
 
Hi Chuzz,..Re:.CNPEG

Interesting chart. Looks like everything on the list is a buy except AOL, relatively speaking, but if you're using the CNPEG2 strictly for purposes of risk adjustment, can that be legit? The main concern is that beta is a volatility measure and also relative to the index so we're now looking at a relative normalized measure of a relative value. Do we interchange risk and volatility? Is this the same thing as over-optimization? <g>

Maybe the risk is not in the relative volatility but in the sector to which a stock belongs? Also, market cap seems lately to have the affect of reduced risk even if the stock is volatile. FWIW, I like the plain CNPEG. <g> Useful metric, relatively speaking of course.<g>

Thanks for the post and comparisons,

Lee



To: Chuzzlewit who wrote (94173)2/2/1999 5:58:00 PM
From: BGR  Read Replies (2) | Respond to of 176387
 
CTC,

I think you are underestimating DELL's EG and the CNPEG2 should be lower than 1.

-Apratim.