CAPM:

E(R)=Rf+β(Rm−Rf)E(R) = R_f + \beta (R_m - R_f)E(R)=Rf​+β(Rm​−Rf​)

Given:

E(R)=11%,Rf=2%,Rm=8%E(R) = 11\% , R_f = 2\%, R_m = 8\%E(R)=11%,Rf​=2%,Rm​=8%

0.11=0.02+β(0.08−0.02)⇒0.11−0.02=0.06β⇒0.09=0.06β⇒β=1.50.11 = 0.02 + \beta(0.08 - 0.02) \Rightarrow 0.11 - 0.02 = 0.06\beta \Rightarrow 0.09 = 0.06\beta \Rightarrow \beta = 1.50.11=0.02+β(0.08−0.02)⇒0.11−0.02=0.06β⇒0.09=0.06β⇒β=1.5

Beta > 1 ⇒ higher risk than the market.