Answer:
16.7%
Explanation:
This is how I have interpreted your question.
Risk premium = 0.050
Risk free rate = 0.066
Beta = 2.02
Expected return = [0.066 + (2.02 * 0.050)] * 100%
= 16.7%
Risk Premium = Market Return - Risk Free rate
The formula for any variable would be as follows
E(R) = Rf + (B * (Mr - Rf)), where Mr is market return
Hope that helps.
