A stock has an expected return of 10 percent, the risk-free rate is 6 percent, and the market risk premium is 5 percent. The beta of this stock must be . Note that the market risk premium is given.

To find the beta of the stock, we can use the Capital Asset Pricing Model (CAPM) formula. The CAPM formula is as follows:

Expected Return = Risk-Free Rate + Beta * Market Risk Premium

Given that the expected return is 10 percent, the risk-free rate is 6 percent, and the market risk premium is 5 percent, we can substitute these values into the CAPM formula:

10% = 6% + Beta * 5%

Now, let's solve for the beta:

10% - 6% = Beta * 5%
4% = Beta * 5%

To isolate Beta, we can divide both sides of the equation by 5%:

4% / 5% = Beta * (5% / 5%)
0.8 = Beta

Therefore, the beta of this stock is 0.8.