Rm- market return

You can't calculate market return of stocks or at least Rm in CAPM actually means returns from market..

Market returns are quite simple

Take Base year  1-apr-1979 when Sens*x was at 100

Today's sens*x- 21 july-2012 is 17158.44

Sens*x multiple =current/base= 171.58

From 1-april-1979 to 21 july-2012 is total of 33.33 years (use excel for this)

Average market return=  sens*x multiple^(1/n)=171.58^(1/33.33)= 16.69%

for returns of stock we need beta ...find last 7 years either yearly or monthly prices of both sens*x and Axis bank .. Then find returns % for these years eg. %returns(2006) =(price(2006)-price(2005))/Price(2005) *100  

and so on..

After all this find slope intercept taking x as stock returns(dependent variable) and y as index returns(independent variable) ----------------use excel for all this...

we also need rf 'risk-free rate' which is 8.50% i think... after all this use CAPM formula...

That;s all

Not Clear Still..i jus want to knew the market return of axis bank