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a. What is the equation for the Security Market Line (SML)? (Hint: First determine the expected market return.) I. ni=6.0%+(9.7%)bi II. n=6.0%+(9.3%)b III. ri=3.0%+(9.7%)bi IV.
a. What is the equation for the Security Market Line (SML)? (Hint: First determine the expected market return.) I. ni=6.0%+(9.7%)bi II. n=6.0%+(9.3%)b III. ri=3.0%+(9.7%)bi IV. ni=0.8%+(8.6%)bi V. ri=3.0%+(9.3%)bi b. Calculate Kish's required rate of return. Do not round intermediate calculations. Round your answer to two decimal places. % The new stock be purchased. At what expected rate of return should Kish be indifferent to purchasing the stock? Round your answer to two decimal places. %
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