CAPM Model and Calculating the Inflation Rate?

Capital Asset Pricing Model
Knowledge Center

 

Next Topic

Capital Asset Pricing Model > Best Practices

Sadek, Student (MBA), Egypt
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


  Anonymous
 

Is CAPM Inflation Adjusted?

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.

 
More on Capital Asset Pricing Model
Summary
Forum
🔥How to Use CAPM for Project Analysis?
Question - CAPM and Beta
CAPM is Irrelevant to Use
Best Practices
🥇Can Beta of a Stock be 0? And can Beta be Negative?
🥈Application of Capital Asset Pricing Model in Pakistan
🥉Raw Beta vs Adjusted Beta
Calculating Beta of Portfolio after Portfolio Change
CAPM usage by Fund Managers
Why Sharp Increase in the Calculation for Betas
Are US Treasury Bills still Zero Beta?
Calculating Company Beta
CAPM Model and Calculating the Inflation Rate?
Concept of Marginality and CAPM
What is Beta? Explanation and a Few Remarks
Special Interest Group Leader

Are you an expert in Capital Asset Pricing Model? Sign up for free


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. V15.6 - Last updated: 29-10-2020. All names of their owners.