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1. You plan to invest in the Kish Mutual Fund, which has total capital of $500 million invested in five stocks: Stock Investment Stock's Beta

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1. You plan to invest in the Kish Mutual Fund, which has total capital of $500 million invested in five stocks: Stock Investment Stock's Beta Coefficient $160 million 0.5 A B 120 million 1.2 C 80 million 1.8 D 80 million 1.0 E 60 million 1.6 The risk-free rate is 6%, and you believe the following probability distribution for future market returns is realistic Probability Market Return 0.1 -28% 0.2 0 0.4 12 0.2 30 0.1 50 a. Calculate Kish's required rate of return. [10 Marks] O

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