Capital Asset Pricing Model (CAPM) Calculator

CAPM Calculator

CAPM Calculator

Parameter Description Example Value
Risk-Free Rate The return on risk-free investments (e.g., government bonds). 2%
Beta The measure of volatility, or systemic risk, of a security or portfolio in comparison to the market as a whole. 1.5
Market Risk Premium The additional return expected from holding a risky market portfolio instead of risk-free assets. 6%
Expected Return The return expected on the investment (Risk-Free Rate + Beta * Market Risk Premium). 11%

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