Do I need to install anything?

No. It runs in any modern browser, free, with no account required.

For Hobbyists & Makers · CAPM & Beta

CAPM & Beta for a hedge position

Built for hobbyists & makers exploring it for fun. Play with real physics and math, no license and no setup — just open and tinker. Simulate a hedge position live below — adjust the inputs and watch it respond, right in your browser.

CAPM & BetaLive

pricing risk

Controls

Presets

Risk-free rate (%)

Market return (%)

Asset beta β

The Capital Asset Pricing Model says an asset's expected return equals the risk-free rate plus beta times the market risk premium. Beta measures how much a stock swings with the market — a beta of 2 is twice as volatile, and demands twice the premium. Educational tool, not financial advice.

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Data Inspector

Expected return10.20%

Risk premium7.20%

Risk profileaggressive

Governing equation

E [R] = R_{f} + β (R_{m} - R_{f}) = 3 + 1.2 (9 - 3) = 10.20%

Reading this result: Beta above 1 amplifies the market premium: this asset is expected to return 10.20%, above the 9% market, and to swing harder in both directions.

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Frequently asked questions

Is this good for hobbyists & makers?: Yes — this version of "CAPM & Beta for a hedge position" is framed for hobbyists & makers exploring it for fun. Play with real physics and math, no license and no setup — just open and tinker.
Do I need to install anything?: No. It runs in any modern browser, free, with no account required.