The CAPM formula calculates the cost of equity, ke, and takes into account the systematic risk.
where (E(rm) - Rf) is the risk premium attached to the project or portfolio and adjusted with the beta factor (systematic risk). This formula is given in the exam formulae sheet.
(E(r
(E(rm) - Rf)
(Rf - E(rm))
(Rf - (E(rm)- Rf)
(E(rm) - Rf)