Analysts use the CAPM (Capital Asset Pricing Model) to calculate an acceptable rate of return. The market risk premium is an important part of this. Investors invest with the highest rate of return and the lowest risk, and this remains the ideal situation. In practical circumstances, however, ...
Annual return on investment (r) % See also: Capital Asset Pricing Model (CAPM) P=D0×(1+g)r−gP=D0×(1+g)r−g Notice!Savings and investments are always related with risk (uncertainty) that returns vary. The result of the calculator can not in any event be interpreted as inv...