Question
How do you know when to calculate Rf twice in the CAPM formula? I've seen examples that solve for expected return as CAPM = Rf+Beta(Rm-Rf)
How do you know when to calculate Rf twice in the CAPM formula?
I've seen examples that solve for expected return as CAPM = Rf+Beta(Rm-Rf) AND CAPM = Rf+Beta(Rm)
I'm confused on when to utilize each of these formulas and need help figuring out when to use each.
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts
10th Edition
1260013820, 978-1260013825
