CAPM Model and Calculating the Inflation Rate?

Capital Asset Pricing Model
Knowledge Center

 

Next Topic

Capital Asset Pricing Model > Forum > CAPM Model and Calculating the Inflation Rate?

CAPM Model and Calculating the Inflation Rate?
Sadek, Student (MBA), Egypt, Member

Can CAPM help us in calculating the inflation rate and in taking the investment decision? Need an ilustration on the this subject. (...) Read more? Sign up for free
 

Please register now to read all responses and to join this discussion yourself. It's easy and 100% free.

Sign up for free     Log in


 
Is CAPM Inflation Adjusted?
Anonymous

The CAPM formula is: Expected return = Risk free return + (beta * market risk premium)
Notice that inflation is not part of the formula so CAPM is normally not inflation adjusted. The expected return may be influenced by the current inflation rate, but I would not call it inflation adjusted.
 

         
Special Interest Group Leader

Interested? Sign up for free.


Capital Asset Pricing Model
Summary
Forum
Best Practices


Capital Asset Pricing Model
Knowledge Center

 

Next Topic



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2020 12manage - The Executive Fast Track. V15.4 - Last updated: 26-2-2020. All names of their owners.