Question 3 (20 marks) You plan to invest in the NASHORA Hedge fund, which has total capital RM500 million invested in five stocks Stock Investment Stock's Beta Coefficient A B C D E RM160 million 120 million 80 million 80 million 60 million 0.5 1.2 1.8 1.0 1.6 NASHORA's beta coefficient can be found as weighted average of its stock's beta. The risk-free rate is 6%, and market return = 13%. a. What is the equation for the Security Market line (SML)? (5 marks) b. Calculate NASHORA's require rate of return. (10 marks) c. Suppose Khaleef, the president, receives a proposal from a company seeking new capital. The amount needed to take a position in the stock is RM50 million, it has an expected return of 15%, and estimated beta is 1.5. Should Khaleef invest in the new company