Monday, 12 November 2012

Getting Risk Free Rate and Market Return in Malaysia

To calculate the required rate of return for an asset using capital asset pricing model (CAPM), one needs risk free rate, market return and beta.

These inputs can be obtained from Bloomberg Terminal.

Type "CRP" and the following screen will appear. Risk free rate and market return can be obtained here.


The risk free rate and market return fluctuate daily.

In the case of Malaysia, the Malaysia Govt Bonds 10 Year Yield (Bloomberg ticker: MAGY10YR) is used as risk free rate

Market return is the capital weighted average of the internal rate of return for all major index numbers.

To get beta of a stock, select the stock, then enter "beta" at the command line and the beta will appear.
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4 comments:

  1. Unknown7 April 2013 at 23:26

    Bloomberg Terminal, how much does it cost for individual user?

    ReplyDelete
    Replies
    1. Malaysia Stock Talk8 April 2013 at 09:34

      If I remember correctly, about USD6000 every quarter

      Delete
  2. Unknown3 January 2015 at 20:08

    Bloomberg terminal, what is the risk free rate and expectedmarket rate for year 2014

    ReplyDelete
  3. Unknown28 February 2016 at 01:42

    Bloomberg Terminal, what is the expected market return for year 2016 (10 year)

    ReplyDelete

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