Kish's beta coefficient can be found as a weighted averoge of its stocks' betas. The risk-free rate is 4%, and you believe the following probability distribution for future market returns is realistic: What is the equation for the Security Market Une (SML)? (Hint: First determine the expected market return.) 1. n=3.0%+(11.0%)b i II. n=4.0%+(11.1%)b III. n=6.3%+(9.6%) b TV. n=6.3%+(11.1%)b i Vin=4,0%+(9.6%) bi b. Calculate Kish's required rate of return. Do not round intermediate calculations. Round your answer to two decimal places. % c. Suppose Rick Kish, the president, receives a proposal from a company seeking new capital. The amount needed to take a position in the stock is $50 milion, it has an expected return of 15%, and its estimated beta is 1.5 . Should Kish invest in the new company? 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