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Investment Analysis Clubs / The BMW Method


Subject:  Re: BMW Assumption #1 Date:  3/11/2018  9:19 PM
Author:  captainccs Number:  42216 of 42349

The Klein charts actually do the calculation for us. The chart legend has a line such as:
-1RMS (RF=1.37)
In this example, the value of R is 1.37.

That RF number assumes that the price bounces back to the mean instantaneously which it won't. I calculated a yield based on the price getting back to the mean (the red line) over time

I'm not sure if this calculator is giving the right results after I fixed some other problems with the code.

Denny Schlesinger
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