> The market risk premium is 10.00 percent, and the risk-free rate is 4.50 percent. If the expected return on a?

The market risk premium is 10.00 percent, and the risk-free rate is 4.50 percent. If the expected return on a?

Posted at: 2014-12-05 
Re-arrange the CAPM equation to solve for Beta. B=(E(r)-rf)/(rm-rf). It's plug and chug after that.

I also should mention that it gives you market risk premium as one number: 10% which is rm-rf, so don't make the mistake of thinking you have to subtract the risk free rate from 10, (rm-rf)=10

You normally would have to calculate the premium yourself if it gave you the market risk and the risk free rate

The market risk premium is 10.00 percent, and the risk-free rate is 4.50 percent. If the expected return on a bond is 11.00 percent, what is its beta? (Round answer to 2 decimal places, e.g. 15.25.)