Equities,Quant market, return, interest, expected

hanvinh

When you calculate CAPM, do you use:

market return - nominal interest rate

OR

market return - real risk-free interest rate.

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When you calculate NPV, and you've given the risk-free interest, expected inflation rate, and market risk premium & beta, to calculate the cost, do you use:

Risk-Free + Expected Inflation + Market Risk Premium

OR

Risk-Free + Market Risk Premium