The Capital Asset Pricing Model Calculator (CAPM Calculator) helps calculating the expected return, based on the Capital Asset Pricing Model

The Capital Asset Pricing Model is represented by Security Market Line (SML), which displays the expected rate of return of an individual security as a function of systematic, non-diversifiable risk

According to the Formula of Security Market Line:

E(R_i) = R_f + Β_i ^.[E(R_M)-R_f]

where:

E(R_i) is an expected return on security

E(R_M) is an expected return on market portfolio M

β is a nondiversifiable or systematic risk

R_M is a market rate of return

R_f is a risk-free rate