logo

CAPM Model and Calculating the Inflation Rate?
Knowledge Center

Capital Asset Pricing Model
Forum

Rating

Sadek
3
Sadek
Student (MBA), Egypt

CAPM Model and Calculating the Inflation Rate?

Can CAPM help us in calculating the inflation rate and in taking the investment decision? Need an ilustration on the this subject.

X

Sign up for free

Welcome to the Capital Asset Pricing Model forum of 12manage.

Here we exchange knowledge and experiences in the field of Capital Asset Pricing Model.

❗Sign up now to gain access to 12manage. Completely free.

Reg
 
Comments

Rating
  Anonymous
1
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.

 

Leave a comment
Help improve this subject

More on Capital Asset Pricing Model
Summary Discussion Topics
topic Can Beta of a Stock be 0? And can Beta be Negative?
topic What is Beta? Explanation and a Few Remarks
topic Application of Capital Asset Pricing Model in Pakistan
topic Raw Beta vs Adjusted Beta
topic How to Use CAPM for Project Analysis?
topic Calculating Beta of Portfolio after Portfolio Change
topic Question - CAPM and Beta
topic CAPM is Irrelevant to Use
topic CAPM usage by Fund Managers
topic Why Sharp Increase in the Calculation for Betas
topic Are US Treasury Bills still Zero Beta?
topic Calculating Company Beta
👀CAPM Model and Calculating the Inflation Rate?
topic Concept of Marginality and CAPM
🔥 The Fama-French Three-Factor Model
topic Testing CAPM with Individual Stock Returns
Special Interest Group


More on Capital Asset Pricing Model
Summary Discussion Topics
topic Can Beta of a Stock be 0? And can Beta be Negative?
topic What is Beta? Explanation and a Few Remarks
topic Application of Capital Asset Pricing Model in Pakistan
topic Raw Beta vs Adjusted Beta
topic How to Use CAPM for Project Analysis?
topic Calculating Beta of Portfolio after Portfolio Change
topic Question - CAPM and Beta
topic CAPM is Irrelevant to Use
topic CAPM usage by Fund Managers
topic Why Sharp Increase in the Calculation for Betas
topic Are US Treasury Bills still Zero Beta?
topic Calculating Company Beta
👀CAPM Model and Calculating the Inflation Rate?
topic Concept of Marginality and CAPM
🔥 The Fama-French Three-Factor Model
topic Testing CAPM with Individual Stock Returns
Special Interest Group
Knowledge Center

Capital Asset Pricing Model


About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2024 12manage - The Executive Fast Track. V17.2 - Last updated: 18-5-2024. All names ™ of their owners.