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Kish's beta coetficient can be found as a welghted average of its stocks' betas. The risk-free rate Is 6*b, and you believe the folowing probability

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Kish's beta coetficient can be found as a welghted average of its stocks' betas. The risk-free rate Is 6*b, and you believe the folowing probability distribution. for future market returns is resilistici: a. What is the equation for the Security Market Line (SML)? (Hint: First determine the expected market return.) 1. n=10.0%+(6.746)b it. h=10.0%+(5.246)b [ii. n=6.0%+(6.7W)bi IV. h=6.4%+(5.8%)b vin=6.0%+(5.2%)b. 5. Calculate Kish's required rate of return. Do not round intermediate calculations. Round your answer to two decimal places. c. 5upposn fick Kish, the president, tecelves a proposal from a company seeking new capital. The amount needed to take a position In the stock is s50 milion, if has an The new stock be purchased. At what expected rate of retum should Kish be inditferent to purchasing the stock? Round yeur answer to two decimal ploces. %

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