CAPM measures the amount of an asset's expected return which is the first step in building out an efficient frontier. CAPM itself uses a foundational equation ...
How do you calculate cost of equity using CAPM in Excel?
After gathering the necessary information, enter the risk-free rate, beta and market rate of return into three adjacent cells in Excel, for example, A1 through A3. In cell A4, enter the formula = A1+A2(A3-A1) to render the cost of equity using the CAPM method.
What is CAPM calculator?
The CAPM calculator (capital asset pricing model) aims to determine the expected return of a particular asset or investment.