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Kish's beta coefficlent can be found as a weighted average of its stocks' betas. The risk-free rate is 6 wit, and you believe the following

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Kish's beta coefficlent can be found as a weighted average of its stocks' betas. The risk-free rate is 6 wit, and you believe the following probability distribution for future market returns is realistic: 3. What is the equation for the security Market Line (SML)) (Hint: Frst determine the axpected market return.) I. n=6.04+(6.4%)b1 If. n=3,9%i+(6,79/6)b b III. 1=6,046+(8,146)b, F,n=5.40b+(6.49b)bi Vi,=5.4%+(0.146)bi b. Calculate Kish's required rate of return, Do not round intermediate calculations. Round your answer to two decimal places. 46 c. Suppose Rick Kish, the president, recelves a proposal from a company seeking new capital, The amount nended to take a position in the stock is s50 million. it has an expected return of 17 No, and its estimated beto is 1.4. 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. A stock's returns have the following distributinnt Assume the risk-free rate is 2%. Calculate the stock's expected return, standard deviation, conficient of variation, and sharpo ratio, Do not raund intermediat calculations. Round your answers to two decimal places. Stock's expected return: Standard deviation: (3) 116 Coefficient of variation

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