Capm(rf, rm, beta)
Calculates the expected stock return under the Capital Asset Pricing Model on a stock or list of stocks.
The required parameters are «rf» (risk free rate), «rm» (market return), and «beta» (beta of individual stock), all as numbers. «Beta» is the relative marginal contribution of the stock to the market return, defined as the ratio of the covariance between the stock return and market return, to the variance in the market return.
Capm is defined as
rf + beta*(rm - rf)
- Capm(rf, rm, beta: Numeric)
Capm(0.08, 0.12, 1.5) → 0.14
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