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Author: Charley Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 254113  
Subject: Re: Naive upside/downside calculation Date: 7/17/1999 3:01 AM
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Dave, I know I don't understand the implications of the log converted numbers. But the thought has struck me, penetrating the Coors, that there could be another way of normalizing the data.

I can envision that it could be necessary to calcualte the SD twice. Once for the upside and once for the downside. But, change the returns before making the calculations.

When doing the upside SD, modify the downside returns so that -50% is -100% (the upside equivilant to recover).

When doing the downside calculation, change the upside returns to mirror what its downside equivilant would be. That is +100% would be changed to +50%. and +200% would be change to +66%.

With this method, the SD's cannot be outside the possible bounds.

But maybe the results are meaningless.

Good Returns
Charley Meng
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