Assume that Rf = 5 percent and Km = 10.5 percent . Compute Kj for the following betas, using formulas 11A-2 (Provided in pic)

A. 0.6

B. 1.3

C. 1.9

o not accept returns that are less than they can g urposes, it is assumed that short-term U.S. Trea s asset.1 When viewed in this context, an investo hat obtainable from a Treasury bill in order to i his brings us to the more common and theoretic k-free rate of return a coefficient from Formula 11A-1