CAPM Analysis Tool

Capital Asset Pricing Model (CAPM)

The CAPM helps us understand the relationship between the risk of an asset and its expected return. It's widely used to estimate how much return an investor should expect for taking on additional risk.

Calculate Expected Return Using CAPM

Visualization

Real-World Applications of CAPM

The CAPM is used in various ways in finance:

Assumptions and Limitations of CAPM

CAPM is based on several assumptions:

However, it has some limitations:

Case Studies

Let's look at some real-world examples of CAPM in action: