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What Is a Purchase Order Request?
Understanding Key Financial Ratios
Why Choose an Enrolled Agent vs. a CPA?
How to Prepare Closing Entries
Understanding Bank Financial Statements
Preparing Consolidated Financial Statements
What Are the Requirements for Taking the CPA Exam?
How to Format an Income Statement
Classifying Assets & Liabilities
Types of Accounting Careers
Analyzing Financial Statements
Specialized Fields of Accounting
Role of an Internal Auditor
How to Calculate Margin Percentage
Types of Internal Controls
How to Calculate Sales
How to Become a CPA
How to Fill Out a Financial Statement
How to Define Owner's Equity
How to Calculate CAPM
Calculating Cost of Goods Sold
How to Read a Balance Sheet
Types of Accounting
How to Evaluate a Cash Flow Statement
How to Format a Cash Flow Statement
How to Calculate Return on Assets
Summary: Calculate CAPM, or capital asset pricing model, by taking the risk-free rate of a security and multiplying it by the risk premium. Figure out the average risk for a security by using the CAPM with information from a certified public accountant in this free video on accounting.
Miranda Chook is a CPA with expertise in international operations. She has held executive positions with both publicly listed and privately held companies. In addition to her finance...read more
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"My name is Miranda Chook, a CPA. The capital asset pricing model depicts the, the concept of investment risk of a security with the expected return of that security. And it is calculated by taking the risk free rate of a security times a risk premium, and the risk premium is calculated as the beta of a security times a risk premium for securities of so called "average risk." So if you are interested in a specific security, you can take a look at the analysis including the CAPM that's been done by a company's own analyst or analysts following the company's stock."
eHow Article: How to Calculate CAPM
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