Suppose your health care small business has a market return of 12% and a beta of 1.2. If the government's Treasury bills (the risk-free rate) are yielding 3.0% and using the Capital Asset Pricing Model CAPM) that is The required rate is = Risk-free rate + Beta (market return - risk-free rate), Note also, that the risk premium = Required rate - Risk-free rate Then based on the CAPM and other hints above, the risk premium for investing