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Required rate of return and Capital Asset Pricing Model

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11A-1: Assume that Rf = 5%, and Km = 10.5%. Compute Kj for the following betas
a. 0.6
b. 1.3
c. 1.9

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This post explains how to calculate the required rate of return using capital asset pricing model.

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11A-1: Formula: Kj = Rf + β (Km - Rf)
The formula for calculating required ...

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