Stock selection process

[PassiveReturns]

Hi all

I have a noob question regarding CAPM ..

Do you guys use CAPM to find the discount rate for DCF model ? if so , how do u all get the value for market return since R = Risk free rate + (market risk - risk freerate )*B and we need the market return to get the discount rate.

is it possible to use the avg returns of the sti index ?

miyaki, CAPM ... humm, it sounds complicated.

I ever read WallStraits Sage's recommendation to use "the current yield of relatively risk-free investment like U.S. Treasury bonds. Personally, I think I prefer and merely use the known or expected inflation rate (eg GST 7%) and add another 2% buffer as the discount rate, because afterall, the value of money will shrink as what it costs today will cost more in the future, barring any deflation circumstance arising.