Capital Assets Pricing Model is the relationship between systemic risk,Especially stocks & expected to return on the assets. This CAPM is widely used for pricing the risk security and for generate expected returns on assets due to the risk of such assets and capital costs.

The formula to calculated this:-

Eri= Expected return of investment.

Rf= Risk Free rate.

Bi= Beta of investment.

(ERm - Rf)= Market risk Premium.