CAPM for asset return
Use market beta and risk premium take estimate di required return.
Your numbers
Required return wey di model calculate
Estimate for learning with your assumptions; no live rates, tax rules or investment recommendations. Returns fit dey negative and no get guarantee.
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You fit keep up to three snapshots for this tab. Loading one go replace the present inputs.
Formula
E[R]=Rf+β(E[Rm]−Rf)
Use market beta and risk premium take estimate di required return.
Example wey show the calculation
- Rate wey no include risk (%)
- 3
- Market return wey you expect (%)
- 8
- Di market beta
- 1.2
- Required return wey di model calculate
- 9 %
- Premium for market risk
- 5 percentage-point difference
Where e fit work and limits
Estimate for learning with your assumptions; no live rates, tax rules or investment recommendations. Returns fit dey negative and no get guarantee.
We check inputs for missing values and allowed ranges. Result wey pass the finite numeric range no go show. Rounding affect wetin display, while calculation use the model numeric precision.
Check your units and assumptions before you rely on result. Changing label no convert currency or physical unit.
Version of di formula: 48215307fa8b · Example don get check: