Difference between revisions of "Capm"

Latest revision as of 20:37, 24 May 2016

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)

Syntax:

Capm(rf, rm, beta: Numeric)

Example

Capm(0.08, 0.12, 1.5) → 0.14

Library

Financial library functions (Financial Library.ana)

Use File → Add Library... to add this library

@@ Line 1: / Line 1: @@
-[[Category:Doc Status D]] <!-- For Lumina use, do not change -->
+[[Category:Financial library functions]]
+[[Category:Doc Status C]] <!-- For Lumina use, do not change -->
+==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
+:<code>rf + beta*(rm - rf)</code>
+[[Syntax]]:
+:[[Capm]](rf, rm, beta: Numeric)
+==Example==
+:<code>Capm(0.08, 0.12, 1.5) &rarr; 0.14</code>
+==Library==
+[[Financial library functions]] ([[media:Financial Library.ana|Financial Library.ana]])
+:Use [[File menu|File]] &rarr; '''Add Library...''' to add this library
+==See Also==
+* [[CostCapme]]
+* [[CostCapmm]]
+* [[Calloption]]
+* [[Wacc]]
+* [[media:Financial Library.ana|Financial Library.ana]]
+* [[Financial functions]]
+* [[Financial library functions]]