Master calculating cost of equity in Excel using CAPM. Discover step-by-step guidance on market return, risk-free rate, and beta components for effective investment decisions.

Every investor strives to balance two conflicting goals: Maximizing their investment returns and minimizing their risk. Beta offers a way to measure the amount of risk you’re taking on for a given ...

Learn how the International Capital Asset Pricing Model (ICAPM) accounts for global market factors and currency risks to calculate expected asset returns.

We often hear the word beta in the context of “beta test”. It’s a way of testing something (e.g. a software program) in a real-world situation to iron out any glitches before rolling it out to the ...

This article originally appeared in the fall 2019 issue of Morningstar Magazine. To learn more about Morningstar Magazine, please visit our corporate website. The Capital Asset Pricing Model is one of ...