This article focuses on CAPM Beta - its Definition, Formula, Calculate Beta in Excel. Learn how to calculate Beta, Unlevered Beta and Levered Beta.

Apr 7, 2025 · In corporate finance, beta (β) measures the systematic risk of a security compared to the broader market (i.e. non-diversifiable risk). The beta of an asset is calculated as the …

Dec 15, 2020 · In this guide, we’ll break down the CAPM beta formula, how to interpret beta values (including the beta of a risk-free asset), and walk through examples so you can …

Nov 11, 2025 · The following formula is used to calculate a CAPM beta. To calculate a CAPM beta, subtract the expected market return from the expected investment return, then divide by …

Nov 20, 2025 · Learn what the beta coefficient is, how it measures a stock’s volatility relative to the market, and how investors use beta in portfolio and risk analysis.

Aug 17, 2025 · Beta compares a security or portfolio's volatility or systematic risk to the market. If a stock is riskier than the market, it will have a beta greater than one. If a stock has a beta of …

Jul 17, 2025 · This guide explores how to calculate beta, what it reveals about a company’s risk, and how to incorporate it into investment decision-making using tools like the Capital Asset …

You can use this Capital Asset Pricing Model (CAPM) Calculator to calculate the expected return of a security based on the risk-free rate, the expected market return and the stock's beta. …

Nov 17, 2025 · Beta can also be found using the formula below: β = Covariance (R e, R m) / Variance (R m) where: Based on this formula, the greater the standard deviation of the stock, …

Apr 2, 2025 · The Capital Asset Pricing Model (CAPM) is a widely used financial model that helps investors assess the expected return on an investment based on its risk. In this section, we will …