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    Finding Beta for a Stock

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    The Treasury bill rate is 4 percent, and the expected return on the market portfolio is 12 percent. Using the capital asset pricing model:

    If the market expects a return of 11.2 percent from stock X, what is its beta?

    © BrainMass Inc. brainmass.com June 3, 2020, 10:15 pm ad1c9bdddf
    https://brainmass.com/business/capital-asset-pricing-model/222540

    Solution Summary

    Calculations are shown to find the beta, given the treasury bill rate and expected return for a stock.

    $2.19

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