4

Assume Rf=5.8 percent and Rm=9.8 percent and an increase in interest rates changes Rf to 718 percent also assume that the narket premium (RmRf ) changes to 8.3 percent. Compute Kj for the following betas; (Round the final answers to 2 docimal places. Omit 5 sign in your response.) Pleose show all calculations (submit on the course Moodle page)