Even The mini Tools Can Empower People to Do Great Things.
Add Extension
 

CAPM Calculator

Perform calculations based upon the capital asset pricing model.

CAPM Calculator
Fill in any three to calculate the fourth value:
Expected return on the capital asset (E(Ri)): %
Risk free rate of interest (Rf): %
Expected return of the market (E(Rm)): %
Beta for capital asset (βi):

Embed CAPM Calculator Widget

Result
Expected return on the capital asset (E(Ri)) 8.6706%
Risk free rate of interest (Rf) 2.18%
Expected return of the market (E(Rm)) 10%
Beta for capital asset (βi) 0.83

If you find our tools cool and useful, don't miss out on installing our super convenient Chrome Extension! With just one click, you'll get quick access to all our handy miniwebtools without having to search for our site again. Installation is a breeze - simply click here and add it to Chrome. Get ready to save time and boost your productivity with our nifty extension!

           

If you have websites, you can embed this tool to increase your visitors' engagement. Or please share the result via:

About CAPM Calculator

The CAPM Calculator is used to perform calculations based upon the capital asset pricing model. It will calculate any one of the values from the other three in the CAPM formula.

CAPM (Capital Asset Pricing Model)

In finance, the CAPM (capital asset pricing model) is a theory of the relationship between the risk of a security or a portfolio of securities and the expected rate of return that is commensurate with that risk. The theory is based on the assumption that security markets are efficient and dominated by risk averse investors. risk averse investors. It is used to determine a theoretically appropriate required rate of return of an asset, if that asset is to be added to an already well-diversified portfolio, given that asset's non-diversifiable risk.

Formula

The measurable relationship between risk and expected return in the CAPM is summarized by the following formula:

CAPM Formula

where:
E(Ri) = the expected return on the capital asset
Rf = the risk-free rate of interest such as a U.S. Treasury bond
βi = the beta of security or portfolio i
E(Rm) = the expected return of the market

References

  1. http://en.wikipedia.org/wiki/Capital_asset_pricing_model

Reference this content, page, or tool as:

"CAPM Calculator" at https://miniwebtool.com/capm-calculator/ from miniwebtool, https://miniwebtool.com/

×

Do us a favor and answer 3 quick questions

Thank you for participating in our survey. Your input will help us to improve our services.

Where exactly did you first hear about us?

What is your favorite tool on our site?

if Other, please specify:

How likely is it that you would recommend this tool to a friend?

NOT AT ALL LIKELYEXTREMELY LIKELY

Likely score: (1-10)