Discover how the CAPM formula calculates expected returns based on investment risk. Understand its assumptions and learn how it guides financial decision-making.

Portions of this article were drafted using an in-house natural language generation platform. The article was reviewed, fact-checked and edited by our editorial staff. The capital asset pricing model ...

CatalanoFact checked by Ryan EichlerKey TakeawaysCAPM estimates the expected returns of an asset based on its risk.CAPM helps finance professionals assess investment profitability.Beta, a key ...