Jack plans to invest the Global Investment Fund, which holds 4 stocks, and the Fund's assets are as follows:

Stock	Investment	Beta
A	$120,000	1.60
B	$200,000	-0.50
C	$180,000	1.35
D	$100,000	0.75

Jack believes economic conditions during the next year will be strong, normal, or weak, and he thinks that the market returns will have the probability distribution shown below. Assume the risk-free rate is 5.25%,

Conditions	Economic Prob.	Market Return
Strong	25%	36.0%
Normal	50%	12.0%
Weak	25%	-15.0%

Q1. From on the information stated above, complete the following equation for the Security Market Line (SML) in this market.

E(Ri) = Rf + ( )Beta

Q2. The beta of the Global investment fund is ( )

Q3. Then according to SML, the required return of the Global Investment fund is (. )

Q4. Jack expects to receive an additional $200 thousand which he plans to invest in additional stocks. After investing the additional funds, he wants the fund's required and expected return to be 12.45 %. Then the average beta of the new stocks should be (. ) to achieve the target required rate of return.