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Date Posted: 14:29:14 02/21/10 Sun
Author: series and are recalculated every quarter.
Subject: Beta=The industry numbers are based on a=rolling 48 month time

Glossary
Beta
Measures the stock price's sensitivity to fluctuations of the market as a whole. A beta greater than one indicates greater volatility, and a beta of less than one indicates lower volatility, than the market. The company beta is based on industry beta information supplied by the Centre For Research in Finance at the Australian Graduate School of Management. The industry numbers are based on a rolling 48 month time series and are recalculated every quarter. We calculate company betas by taking the industry average beta and then adjusting it for each company based on the company’s financial leverage, as measured by market value debt to equity ratios. We believe using industry betas provides a more stable platform for evaluating risk and is less subject to statistical error. We limit the resulting company beta to a minimum of .5 and a maximum of 2. We do this to minimize any outliers. We feel this provides a more useful number for valuation purposes.

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