Calculate the Expected Return of an asset using the Capital Asset Pricing Model.
Model Inputs
Expected Return
Expected Asset Return0.00%
Market Risk Premium6.50%Additional return for market risk
Security Market Line (SML)
About this calculator
Overview
The Capital Asset Pricing Model (CAPM) describes the relationship between systematic risk and expected return for assets, particularly stocks. It is widely used in finance for pricing risky securities.
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Pro Tips
Beta = 1: Moves with the market.
Beta > 1: More volatile than the market (higher risk/reward).
Beta < 1: Less volatile than the market (defensive).
