Pick you favorite stock, go to Yahoo Finance and look up that stock's beta. Using a price earnings ration of the S and P of 25 or 4% for the market rate of return and 2.5% for the risk free rate tell me the expected rate of return using the stock's beta. CAPM= rf + (( * mkt ror) -rf)) CAPM = risk free rate plus ( beta of stock times Market Rate of Return minus the Risk Free rate)

Nike beta: 0.04 and my calculation is 2.5%+ 0.04 * (4% - 2.5%) = 2.656%, but I was told it is 2.56%.

Is the calculation off?