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CAPM Calculator

Calculate Expected Return using Capital Asset Pricing Model

The Capital Asset Pricing Model (CAPM) describes the relationship between systematic risk and expected return for assets, particularly stocks.

Calculator Inputs

%

e.g., 10-year Treasury yield

Measure of volatility relative to market

%

e.g., S&P 500 average return

Results

Enter values above to see your results

How It Works

Expected Return = Risk-Free Rate + Beta × (Market Return - Risk-Free Rate).

Tips & Best Practices

  • Beta > 1 means the stock is more volatile than the market.
  • Beta < 1 means the stock is less volatile than the market.