Portions of this article were drafted using an in-house natural language generation platform. The article was reviewed, fact-checked and edited by our editorial staff. The capital asset pricing model ...

Master calculating cost of equity in Excel using CAPM. Discover step-by-step guidance on market return, risk-free rate, and ...

One of the key insights of the CAPM is that it answers an important investment question: "What is the expected return if I purchase security XYZ?" The assumption that Sharpe built into the model is ...

Learn how the International Capital Asset Pricing Model (ICAPM) accounts for global market factors and currency risks to calculate expected asset returns.

The Capital Asset Pricing Model, or CAPM, remains the most influential model in finance, largely due to its elegant structure and powerful conclusions. The main conclusions of the CAPM are 1) all ...