# Cost of equity using CAPM equation

Assume that Rf = 6 percent and Km = 10 percent. Compute Kj for the following betas, using CAPM equation

a. 0.7

b. 1.4

c. 1.7

https://brainmass.com/business/capital-asset-pricing-model/179610

#### Solution Preview

Assume that Rf = 6 percent and Km = 10 percent. Compute Kj for the following betas, using Formula ...

#### Solution Summary

Cost of equity (Kj ) has been calculated using CAPM equation, given risk free rate and return on market portfolio.

$2.19