# Capital Asset Pricing Model explained in this answer

Capital asset pricing model

1. Assume that Rf = 5 percent and Km = 10.5 percent. Compute Kj for the following betas.

0.6

1.3

1.9

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#### Solution Preview

Capital asset pricing model

1. Assume that Rf = 5 percent and Km = 10.5 percent. Compute Kj for the following betas, using Formula 11A-2.

0.6

1.3

1.9

We will find cost ...

#### Solution Summary

The solution explains the capital asset pricing model.

$2.19