. Problem 1.21 (Security Market Line) You plan to invest in the Kh Hedge Fund, which has total capital of 500 million invested in five stocka! Stock Investment Stock's Beta Coefficient A $160 milion 0.5 3 120 milion 1.6 0 million 2. D 80 million 10 60 million 1.6 Koshy beta coefficient can be found as a weighted wverwe of its stocker bet. This free rate, and you believe the following probability distribution for Nature market returns to realistic Probability Market Return 0.1 02 0 04 12 03 30 0.1 What the countion for the security Marketune (Hot Port termine the expected market return) 0+ 0 116.29 (67 m. - 5.00(804) IV 6.547.3%) 09+ (67) 47 b. Calculate the required rote of retum. Do not found intermediate calculation Hound your anwer to two decimal places Support the presencecea proposal from a company aking new capital. The amount needed to me poetion in the stock in 350 million, it has an expected retum of 10%, and estimated beta i 15 Should Kinh dvest in the new company The new stock the purchased Mwhat expected rate of return should she indifferent to purchaung the stock Round your answer to two decimal places