<t>In reply to Waagh Bakri's statement (in reply to my statement "that normal returns are inconsistant with normal percentage changes") that "for small asset moves (changes over a small period of time) returns on assets & percentage changes are nearly equal"; I would like to say the following:Hi...

<t>1. If we assume that returns(defined as the log of price relatives) are normally distributed (with zero mean), we are required to accept that the probability of a return of .0953 is the same as the probability of a return of - .0953. We are also required to accept that the probability of a .0953 ...

<t>This is my first try at replying to your discussions . I hope I will not find that I am over my head . It seems to me that there is one substantial risk in the long CB v short stock hedge that has not been discussed . That is the following :Most convertibles are generally on higher volatility sto...