CAPM Formula Example: How to Calculate CAPM for Securities

Written by MasterClass

Last updated: Nov 3, 2022 • 4 min read

The CAPM formula helps you quantify the likelihood of particular stock market returns in relation to risk. By applying this formula to each of the securities and assets in your market portfolio, you can better assess the level of risk you court as an investor and whether it’s worthwhile in terms of potential reward. Learn more about this corporate finance and investment concept.