One very interesting fact that our metrics help reveal,

is many different rates of return that a money manager might claim

are actually equivalent to each other in terms of that manager's skill.

And the only difference between them may be whether they use leverage or

investing in part with borrowed money to achieve their results.

Let me explain what I mean.

In the following discussion,

I'll assume that a money management firm can borrow at 1% rate of return.

>> Assume a manager has used his skill to find the stock that

has an annual return of 9% with an expected volatility of returns of 15%.

So in this standard diagram we have volatility on the x-axis and

portfolio returns on the y-axis.

So we're looking at a point at X equals 15,

Y equals 9 which would be just about right about here.

So we would say volatility of returns is 15% and

expected return is 9%.