 Very good to poor
The classical system of awarding marks in German schools (1 = very good to 5 = poor) provides a scale of assessment which is differentiated according to half-marks. We have "calibrated" the evaluation system around what we consider to be a recognisable market average = 3, "satisfactory". Example: 1a) as an example of satisfactory safety we currently regard chartering a ship (container ship) for about 18 months if the chartering party has a good credit standing and the ship is proved to be marketable. 1b) Returns are currently considered "satisfactory" if, after tax, (for investors paying the highest tax rate) they have risen to at least about 6.5 % in relation to a realistic period for tying up capital in this market. 2a) Example of "adequate" safety ("higher risk"): The fund management has business experience, but no noteworthy record of success. 2b) Example of "adequate" returns: with the average minimisation of risk (the fund management has sufficient credit standing and the tenancy agreements run for the usual term) is the post-tax return on investment at least 1% above the present capital market interest rate |