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CAPM Calculator
InvestmentNew
Calculate the expected return of a security using the Capital Asset Pricing Model (CAPM). Essential for investors to assess risk vs. reward.
CAPM Calculator
Expected Return = Rf + β × (Rm - Rf)
%
10-year government bond yield
%
Nifty/Sensex expected return (10-14%)
β=1 = market average, β>1 = higher risk/return
CAPM Result
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Enter values to calculate
About CAPM Calculator
Calculate the expected return of a stock using the Capital Asset Pricing Model (CAPM). Helps determine if a stock offers adequate return for its risk level.
CAPM Formula
E(R) = Rf + β × (Rm - Rf)
Where: Rf = Risk-Free Rate, β = Beta, Rm = Market Return
Frequently Asked Questions
About the CAPM Calculator
Calculate the expected return of a security using the Capital Asset Pricing Model (CAPM). Essential for investors to assess risk vs. reward.
Formula
Expected Return = Risk-Free Rate + Beta × (Market Return – Risk-Free Rate)
Reference Table
| Category | Value |
|---|---|
| Asset | Beta |
| Stock A | 1.2 |
| Stock B | 0.8 |
| Stock C | 1.5 |
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