Pippinpro SG Hi, i got a question.. hope some kind soul can help...As for singapore how to know the market interest rate??Is it benchmarking through the Singapore Interbank Borrowing Rate (SIBOR)or is it the fixed deposit rate of singapore??ThankS!
Pippinpro SG My bad erm...what i mean is the required rate of return for investors..like on average whats the market required rate of return from investing..from bonds to T-bills to stocksthanks ^^
maurizio13 SG Government bonds or T-Bills equals risk free rate of return. Required rate of return means you have to factor in risk aka beta for that particular industry. http://en.wikipedia.org/wiki/Capital_Asset_Pricing_Model
maxtor SG if you r looking for a risk free rate of return, i would imagine that SGS bonds would make a pretty good substitute. http://www.fundsupermart.com/main/sgs/SGShome.tpl
Pippinpro SG thz maxtor and maurizio13..So normally investors see the return depending on the company profitability and stability??is there like a minimum yield the market investors will look for? (e.g higher than fixed deposit in banks )
maxtor SG is there like a minimum yield the market investors will look for? (e.g higher than fixed deposit in banks )i think finance theory assumes market investors to be risk averse = looking for the best return with the least risk.i can't give you a number to what a minimum yield might be though. i've always used the risk-free rate as a good benchmark though.