Reviewed by Thomas Brock Fact checked by Suzanne Kvilhaug CAPM: An Overview Many investors use the capital asset pricing model (CAPM) as a way to estimate the potential return of a stock or other ...

To make it easier, consider using Excel's built-in IRR function ... by measuring their expected return. Before deciding whether to pursue a specific project, a company might calculate that ...

Merton, Robert C. "On Estimating the Expected Return on the Market: An Exploratory Investigation." Journal of Financial Economics 8, no. 4 (December 1980): 1–39.