CAPM Calculator: Estimate Expected Returns with Ease

Use three numbers—risk-free rate, beta, and expected market return—to get an instant risk-adjusted return estimate. For example, plugging 1.9 %, 0.75, and 7.1 % yields 5.8 % expected return. CAPM explains about 70 % of stock-return variation in large U.S. samples (Fama & French, 2004).








