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)
- 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.
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