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Expected Rate Of Return Calculator Using Beta - Calculator City

Expected Rate Of Return Calculator Using Beta




Expected Rate of Return Calculator (Beta Method)

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Expected Rate of Return Calculator (Beta Method)

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\n \n \n The theoretical rate of return of an investment with zero risk (e.g., government bonds).\n

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\n \n \n Measures the volatility of a security or portfolio compared to the market.\n

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\n \n \n The excess return that investors expect from the market over the risk-free rate.\n

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Calculation Results

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Formula Used (CAPM)

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Expected Return = Risk-Free Rate + β × Market Risk Premium

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E(Ri) = Rf + β × (Rm – Rf)

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\n Expected Rate of Return: %\n

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Input Value Value
Risk-Free Rate
Beta (β)
Market Risk Premium
Excess Return (β × Market Risk Premium)

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Note: This calculator uses the Capital Asset Pricing Model (CAPM) to estimate the expected return on an investment based on its systematic risk (beta).

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