Capital Asset Pricing Model

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

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.