MILLBURN, N.J. ( Stockpickr) -- In a perfect world, we would seek the maximum amount of return with the least amount of risk. In the real world, many might see that as a fool's errand. I believe, though, that we can put together a portfolio of stocks that will give us excellent potential return, at a cheap valuation with a minimum amount of risk.With that in mind, I scanned for stocks that met two criteria. First, I sought out stocks with historical volatilities below that of the S&P 500 over the course of the last year; the one-year realized or actual volatility for the S&P 500 is 23.25%. Second, I sought out stocks with PEG ratios that were below 1.3. I used 1.3 as a reasonable measure of good value. As you might know, stocks with a PEG of below 1 are extremely cheap, and those over 2 are too risky or overpriced. >>5 Stocks Under $10 Poised for Breakouts From the resulting stocks, I eliminated those companies that I believed did not meet my normal fundamental criteria for an investment. What was left were five low-volatility, low-PEG stocks suitable for investment.