# Calculate Beta and rate of return for a stock

A stock has a required return of 11%, the risk-free rate is 7%, and the market risk premuim is 4%.

A. What is the stock's beta?

B. If the market risk premium increased to 6%, what would happen to the stock's required rate of return? Assume that the risk-free rate and the beta remain unchanged.

https://brainmass.com/business/beta-and-required-return-of-a-project/calculate-beta-rate-return-stock-426515

#### Solution Preview

required rate or return = Rf + Beta (Rm-Rf)

Rf= risk free rate

Rm= market ...

#### Solution Summary

The solution calculates beta and rate of return for a stock.

$2.19