I have answered several questions from a student from the University of the Philippines-Cebu regarding investing in the Philippine stock market. So far my answers are contained in the post entitled "Questions and answers on the Philippine stock exchange" and "The best asset allocation strategy to follow." As I have previously noted, since the question asked requires somewhat lengthy answers, I have decided to turn it into a series of blog posts for several reasons. First, so that I can have something to post in my blog, secondly, for keyword ambush :-) and thirdly to somehow share knowledge and awareness to the public with regards to the stock market and value investing. One of the questions asked was that if assuming a 20 % rate of return in the stock market is practicable. Here is my answer to the question. Dear Enji Rate of return or otherwise known as “rate of return of investment” is defined by Wikipedia as “the ratio of money gained or lost (realized or unrealized) on … [Read more...]