How to calculate the required rate of return of a stock
In this video, we walk through a simple example of the Capital Asset Pricing Model (CAPM) to calculate the required rate of return on a firm's equity. Using the formula, we identify known variables like beta, the risk-free rate, and the market return, and solve for the required rate of return step by step.
Previous
How to solve capital asset pricing model exam questions (missing CAPM variables)
Next