Appropriate demand of return for a share of common stock

Question

How much more demand of return is appropriate for a share of common stock by risk-averse investors, when compared to a Treasury bill?

Answer 1

We are aware with the fact that the risk return relationship is positive, but the return is appropriate for a given degree of risk is quite difficult. Sadly, no one knows the answer for sure. The very well-known model used to estimate the required return rate of an investment, known its degree of risk, is the CAPM (Capital Asset Pricing Model).