Capital Asset Pricing Model (CAPM) Calculator

In finance and economics, the Capital Asset Pricing Model (CAPM) is used to calculate the expected return of a stock based on the risk-free rate, the expected return of the market, and the stock’s beta. The following formula is used to calculate the expected return:
Expected return = B*(E – R) + R
where
  • R is the risk-free rate.
  • E is the expected return of the market.
  • B is the stock’s beta.
To calculate the expected return for a given stock, simply fill in the values below and then click the “Calculate” button.

Expected return: 11.90%


Zach

Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.