mp3bu

its subjective... an assumption is made that higher volatility decreases PV of future earnings. would if it is a volatile industry with an overall upward trend??? or an industry with an overall downward trend? why even consider earnings volatility in 2011?? will anyone in this economy listen to you tell them they need less insurance because they have volatile earnings? show them your little math formula and explain the discount rate to them? i scoff at this....SCOFF SCOFF....that being said... there is a negative correlation. it doesnt matter why. it just is.



Edited 1 time(s). Last edit at Thursday, January 13, 2011 at 02:23PM by SkipE99.