Abstract

This paper introduces an innovative web application leveraging the Capital Asset Pricing Model (CAPM) to revolutionize financial analysis. As a cornerstone of modern financial theory, CAPM offers a systematic framework for managing portfolio risk and predicting expected returns. In addition to harnessing CAPM principles, the presented web application integrates advanced functionalities tailored to the intricate demands of academics, analysts, and financial researchers. This research endeavor unveils a cutting-edge web application that harnesses the power of CAPM for exhaustive financial analysis and portfolio optimization. Developed with Plotly and Streamlit, the application provides users with an intuitive and immersive platform to assess the performance of individual stocks about the SandP 500 index. Central to its functionality is the capability to explore historical stock data, unveiling temporal trends and correlations, facilitated by seamless data retrieval and visualization. Furthermore, the application facilitates equitable performance evaluations by standardizing stock prices, thereby offering a uniform scale for evaluating asset volatility and growth. This tool represents a significant leap forward in financial analysis, empowering users with more strategic investment insights and fostering a profound comprehension of market dynamics by seamlessly integrating traditional financial models with state-of-the-art web technologies. Through the utilization of the online application and CAPM, the study endeavors to prognosticate Return on Investment (ROI) and Risk of Investment (Beta) for various equities linked to the SandP 500, thereby facilitating informed decision-making and optimized portfolio management.