CAPM Calculator
Calculate the relative value of your securities with our easy to use Capital Asset Pricing Model.
CAPM Standard Calculation
Risk free rate (Rf)
%
Beta for stock (B)
Expected Return of Market (ERM)
%
Expected Return (ER)
%
CAPM based on Market Risk Premium
Risk free rate (Rf)
%
Beta for stock (B)
Expected Return of Market (ERM)
%
Expected Return (ER)
%
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Average Rating: Tool Views: 2.4k
Average Rating: Tool Views: 2.4k
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How to use this CAPM Calculator Tool?
How to use Yttags's CAPM Calculator?
- Step 1: Select the Tool
- Step 2: Enter The Following Value And Show Your Result.
- Step 3: Enter The Following Value And Check Your CAPM Calculator Result
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FAQs for CAPM Calculator
What is a CAPM Calculator?
A CAPM (Capital Asset Pricing Model) calculator is a tool used to estimate the expected return on an investment based on risk-free rates, market returns, and the asset's beta, helping investors assess the risk and potential reward of a specific investment.
How do I calculate CAPM?
To calculate the CAPM (Capital Asset Pricing Model), use the formula:
Expected Return = Risk-Free Rate + Beta (Market Return - Risk-Free Rate).
What is CAPM ratio?
There is no commonly recognized financial ratio referred to as the "CAPM ratio." The CAPM (Capital Asset Pricing Model) is a formula used to estimate expected returns on investments based on risk and market factors.
What is beta for CAPM formula?
In the CAPM (Capital Asset Pricing Model) formula, beta represents the measure of an asset's sensitivity to market movements, indicating its risk relative to the overall market.
How beta is calculated?
Beta is calculated by regressing an asset's historical returns against the market's returns, typically using a financial software or spreadsheet. The slope of the regression line is the asset's beta, which quantifies its risk relative to the market.