what is CAPM approach for calculating the cost of equity?

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what is CAPM approach for calculating the cost of equity?

Vanraj Desai 18th May, 2021

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Ayush 18th May, 2021

Hello candidate,

CAPM refers to the Capital Asset pricing model and the approach for the cost of equity involves the formula-

Formula:- (The Return of a security is equal to the risk-free return plus a risk premium, based on the beta of that security or Dividend Capitalization Model).

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