# Beta and Expected return

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!

© BrainMass Inc. brainmass.com June 3, 2020, 10:05 pm ad1c9bdddfhttps://brainmass.com/business/capital-asset-pricing-model/beta-expected-return-214193

#### 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

$2.19