Online finance calculator to calculate the capital asset pricing model values of expected return on the stock , risk free interest rate, beta and expected return of the market.

Calculator of Capital Asset Pricing Model

Select Your Calculation Part
Expected Return on Stock (E[Ri]) %
Risk Free Rate (Rf) %
Expected Return on the Market (E[Rm]) %
Beta for Stock (βi)
 
 
 

Formula of Capital Asset Pricing Model

E[Ri] = Rf + (RM – Rf) * βi

Rf = ( R – RM * βi) / (1-βi)

E[RM] = Rf + (Ri – Rf) / βi

βi = (Ri – Rf) / (RM – Rf)

Where,

  • E[Ri] = Expected Return on Stock
  • Rf = Risk Free Rate
  • E[Rm] = Expected Return on the Market
  • βi = Beta for Stock

Required rate of return values calculation is done easier here using this Capital Asset Pricing Model (CAPM) calculator.

0 comments

  • Hello, guest