Finding Beta Cofficient?

Question

Hey Guys, doing a sample problem and just cannot find the equation I am supposed to use. Please help

Asset A has an expected return of 15% . The Expected market return is 14% and the risk free rate is 4%. What is Asset A's Beta?

Please help me understand how to find this.

Answer 1

Since it's been a while since I looked at the capital asset pricing model, I went looking for websites. The one at the link below (see the link for the full article) offered the following:

Cost of Equity Capital = Risk-Free Rate + (Beta times Market Risk Premium).

I think your numbers would fit the equation as follows:

.15 = .04 + (beta * (.14-.04))
beta = 1.1

Best of success.