The example above, for instance, calculates the CAPM of Tesla and General Motors for comparison. Tesla stock's actual beta was about 2.51 as of March 23, 2025, and General Motors' beta was 1.43.

The CAPM also assumes that the risk-free rate will remain constant over the discounting period. Assume in the previous example that the interest rate on U.S. Treasury bonds rose to 5% or 6% during ...

A Practical CAPM Example Let’s say you’re evaluating a stock with a beta of 1.3, the risk-free rate is 2.5%, and the expected market return is 9%. Plugging these into the CAPM formula: ...

The objective of this paper is to analyze risk, return and dependency of energy index based in CAPM with copula based Seemingly Unrelated Regression (SUR) model and convex combination interval-valued ...

The capital asset pricing model (CAPM) is a financial model used to determine a security’s expected return considering its associated risk. Developed in the 1960s, CAPM has become an essential ...