Difference between revisions of "Capm"

m (adding doc status category stub page)
 
(Created page and initial function documentation)
Line 1: Line 1:
 
[[Category:Doc Status D]] <!-- For Lumina use, do not change -->
 
[[Category:Doc Status D]] <!-- For Lumina use, do not change -->
 +
 +
===Function Capm(rf,rm,beta:Numeric) ===
 +
Calculates the expected stock return under the Capital Asset Pricing Model on a stock or list of stocks.
 +
; Example:
 +
Capm(0.08, 0.12, 1.5) &rarr; 0.14
 +
; Expects: '''rf''' (risk free rate), '''rm''' (market return), and '''beta''' (beta of individual stock) all as numbers. <br>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.
 +
; Function definition: rf + beta*(rm-rf)
 +
;[[Syntax]]: Capm(rf,rm,beta:Numeric)
 +
;Library: [[Financial functions]]
 +
;More Examples and Tips:

Revision as of 18:41, 25 June 2007


Function Capm(rf,rm,beta:Numeric)

Calculates the expected stock return under the Capital Asset Pricing Model on a stock or list of stocks.

Example
Capm(0.08, 0.12, 1.5) → 0.14
Expects
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.
Function definition
rf + beta*(rm-rf)
Syntax
Capm(rf,rm,beta:Numeric)
Library
Financial functions
More Examples and Tips
Comments


You are not allowed to post comments.