Numerous online calculators can determine the CAPM cost of equity, but calculating the formula by hand or by using Microsoft Excel is a relatively simple exercise.

One simple but powerful method investors can use to assess the risk and reward of a stock portfolio is using the Capital Asset Pricing Model, or CAPM, model for expected returns.

The Capital Asset Pricing Model (CAPM) offers a good starting point for stock analysis. Here we explore what CAPM is, examples, and how it works.

The Required Rate of Return (RRR) represents the minimum amount an investor expects from an investment given a level of risk.

The cost of equity helps to assign value to an equity investment. Cost of equity measures an asset's theoretical return to ensure that it's commensurate with the risk of investing capital.

Learn about the components of the capital asset pricing model (CAPM), and discover how to calculate a company's cost of equity financing with this formula.