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Calculate Risk-Free Rates

Determine the length of time that is under evaluation. If the length of time is one year or less, then the most comparable government securities are Treasury bills. Go to the Treasury Direct website and look for the Treasury bill quote that is most current. For example, if it is 0.204, then the risk free rate is 0.2 percent.

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How to Calculate CAPM in Excel

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Ks = the required rate of return Krf = the risk-free return rate, usually that of U.S. Treasury bonds B = Beta.