Formula
![Risk-free rate of interest(given the expected return and the sensitivity of the expected excess asset returns) formula](http://www.wikicalculator.com/formula_image/Risk-free-rate-of-interest(given-the-expected-return-and-the-sensitivity-of-the-expected-excess-asset-returns)-665.png)
ERm
expected return of the market
ERi
expected return on the capital asset
Rf
risk-free rate of interest such as interest arising from government bonds
betai
sensitivity of the expected excess asset returns to the expected excess market returns