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To: Steve Robinett who wrote (105)	2/3/1999 1:58:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 419

Steve, you said if you're thinking of some kind of ratio of general market volatility to the volatility of a specific issue, I find that an interesting idea ... That is exactly what I'm trying to do. Any concrete suggestions (including where to get the metrics) would be most helpful. The idea is basically this: to arrive at a valuation for a capital asset you should be able to discount the expected future cash flows by a discount rate that is the sum of the risk free interest rate plus a premium based on the riskiness of the equity. Traditional cost of capital measures and variants thereof use beta. The approach I'm trying to use is to ignore direct and indirect measurements of the cost of capital, and instead focus on relative risk and expected growth. TTFN, CTC