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.