How to Calculate Cost of Equity using CAPM

[@mathiseight273]

The way you explain theories is amazing. Thank you !

[@damionfisher5663]

Your videos are amazing, lots of simplicity and clarity. Thank You

[@ivornworrell]

*Thank you very much for your financial videos Sir, this is advanced and very useful financial knowledge for business students like myself.*

[@Edspira]

Happy to help!

[@joh00876]

luv your videos. helped me tons -from Korea

[@Aaron-wh7jp]

That comment about finding the market index of the S&P 500 saved me, thank you so much. God is real

[@orianateyorbeard]

This helped with a homework problem of mine! thank you!!-Oreo

[@ralphgaoseb1782]

Rf, Bi - those available publicly. The Rm is however not clear, where does one get this number?

[@SoulessZombieHD]

Thank you Sir, that really helped me pass my midterm.

[@eversongava4708]

Thanks for the explanation!

[@treyjasso]

thank you for this video! I needed this one.

[@siyabonganxumalo4574]

Wonderful explanation!!!

[@amenagh1]

Do you know how to get the risk free rate if it is not given?

[@harmankardon478]

Great stuff!

[@sushilpokharel4147]

how to find the value of beta when one company acquire another company?

[@ExploreLearnEnglishWithGeorge]

I assigned for a Business management course to learn how to run a business...unfortunately this is part of the curriculum and 'me no happy'...I really can't stand this abstract non-sense. Well explained tho, thanks for the vid...by the time we got to Price to Earnings ratio I have already forgotten what is 'Cost of Equity' derived from, and this video was a convenient reminder. Cheers

[@Nick_88888]

The question is, how do you calculate beta, or from where do you get it?

[@zappas54]

Beta of security= Standard deviation (security return) x Correlation (security return; market return) / Standard deviation (market return). Another formula: Beta: Covariance (security return; market return) / Variance (market return). Using Excel: formula is =SLOPE, where known_y value is individual companies return and known_x value is index returns

[@vusasivedlamini3617]

Good day, what if im not given the Market rate. How do i complete the formula

[@ysbrandd]

Ever found an answer for this?

[@Youssef-vh9dh]

do we use levered or unlevered beta????

[@amenagh1]

But what if you do not have the risk free rate. I'm trying to figure out how to get the risk free rate to use.

[@derektorresdrums799]

You solve for it if you're given R(i). If not the risk free rate is the T-bill rate

[@ExploreLearnEnglishWithGeorge]

treasury bills or short term government bods give you the 'risk free rate' to use for this "fun" excercise

[@bto5881]

Thank you, Sir !

[@kayedal-haddad]

Where do you get the risk free rate of return from?

[@nitinramesh9027]

Its usually the coupon rate of a 10 year treasury bond

[@shahbazahmed8996]

love from india

[@Edspira]

Thank you!

[@ivornevin4687]

How was the figure obtained for expected return for market portfolio obtained?

[@ysbrandd]

if you hadnt found it yet, you could grab for example the smp500 and just grab its average return of the last decade

[@richardsalley9848]

The only thing you left out here is was what the "risk free rate" is. According to Investopedia, if the stock is paying an annual dividend of 3%, that is the risk free rate being used - (the dividend percent rate). Or should it be the current rate paid on a treasury bond?

[@miked2662]

Personally speaking, I was taught that you use the current rate of a treasury bond as your Risk Free Rate.

[@austinsvlog1554]

using a finance calculator this would all be rounded. the 11.6 would be a 12 because the 9.6 would round automatically to a 10

[@bosscheng8948]

what is the meaning of beta here?

[@zhansimeonov3446]

higher volatility demands higher return.

[@siyabonganxumalo4574]

kzbin.info/www/bejne/Y5emio2gg6ZqhtU

[@mr.cornman3793]

Lame explanation..Would have been better using Real Fiancial statement of a Real company.

[@chains-chains]

did you expect him to explain the statistics included in beta calculation?