Solves for any of the 4 items in the Security Market Line equation, Risk free rate, market return, Β, and expected return as well as calculate the Treynor Ratio.

This calculator has 4 inputs.

This calculator has 4 inputs.

- Expected Return = Rf + Β(Rm - Rf)
- (Expected Return - Rf)/ Β

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- expected return
- amount of profit or loss an investor anticipates on an investment
- market return
- risk free rate
- the rate of return offered by an investment that carries zero risk
- security market line
- is the representation of the capital asset pricing model. It displays the expected rate of return of an individual security as a function of systematic, non-diversifiable risk.

Expected Return = Rf + Β(Rm - Rf) - security market line and treynor ratio
- treynor ratio
- a measurement of the returns earned in excess of that which could have been earned on an investment that has no diversifiable risk

(Expected Return - Rf)/ Β