# Beta and Expected return

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I have a two-part question:

I would like help figuring the BETA of my stock that has an expected return of 14%, a risk-free rate of 4% and a market risk premium of 6%. In contrast,

If my stock already has an expected return of 11%, a BETA of .85, and a risk-free rate of 5.5%, please help me calculate what the expected return on the market must be. Thank you!

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#### Solution Preview

I have a two-part question:

Expected return =Risk-free rate + Beta *market risk premium

I would like help figuring the BETA of my stock that has an expected return of 14%, a risk-free ...

#### Solution Summary

This provides the steps to calculate the Beta and Expected return

$2.49