# 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.