Capital Asset Pricing Model (CAPM) Excel Template

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The Capital Asset Pricing Model (CAPM) provides a way to calculate the expected return of an investment based on the time value of money and the systematic risk of the asset. Put simply, CAPM estimates the price of a high-risk stock by linking the relationship between the risk of the stock and the expected return.

CAPM is very commonly used in finance to price risky securities and calculating an expected return on those assets when considering the risk and cost of capital.

For more detailed information about the Capital Asset Pricing Model, including formulas and calculators, you can read our CAPM lesson here.