I Capital Asset Pricing Model (CAPM) is a financial analysis tool that assists investors to measure the expected rate of return on investment carried out on its risk level.

## CAPM Calculator

**Instructions: **Use this calculator to find out the CAPM (Capital Asset Pricing Model) of a company. Please input the Risk-free rate (%), Expected return of the market (%), and Beta for Stock in the form below:

## CAPM Formula

**CAPM = **Risk-free Rate + β x (Market Return – Risk-free Rate)

Where:

Risk-free Rate = A rate of return on government risk-free investment

Market Return = An expected rate of return based on market

Beta or β = Market risk sensitivity

**Must read:** A complete guide on how to calculate CAPM in excel

## Add a Comment