eBook You plan to invest in the Kish Hedge Fund, which has total capital of $500 million invested in five stocks! Stock Investment Stock's Beta Coefficient A $160 million 0.6 B 120 million 1.6 0 million 1.9 D 80 million LO 60 million 1.3 Kish's beta coefficient can be found as a weighted average of its stocks betas. The risk-free rate is 5%, and you belleve the following probability distribution for future market returns is realistic: Probability Market Return 0.1 -26% 02 0 0.4 13 0.2 31 0.1 47 a. What is the equation for the security Market Line (SML) (Hint: Finst determine the expected market return.) 1.-3.4% +(9,4%) II.5.0%(10.3%) III.3.0%. (8,5%) IV.3.0%. (10.3%) V. = 5.0%+(8.5%) tv b. Calculate Kil's required rate of return. Do not round intermediate calculations, Round your answer to two decimal places Support Rick Misty the presidentes a proposat from.company setking new capital. The amount needed to take a position in the stock - $50 million, it has an expected return of 16 and its estimated bets is 1.4. Should Koish invest in the new company The new stock Select be purchased At what expected rate of return should Kish be interent to purchasing the stock Hound your answer to two decimal places