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Why is my last answer wrong? Can anyone help me?? SECURITY MARKET LINE You plan to invest in the Kish Hedge Fund, which has total
Why is my last answer wrong? Can anyone help me??
SECURITY MARKET LINE You plan to invest in the Kish Hedge Fund, which has total capital of $500 million invested in five stocks Stock Investment Stock's Beta Coefficient 0.8 2.0 3.9 1.0 3.4 A $160 million 120 million 80 million 80 million 60 million Kish's beta coefficient can be found as a weighted average of its stocks' betas. The risk-free rate is 3%, and you believe the following probability distribution for future market returns is realistic: Probability 0.1 0.2 0.4 0.2 0.1 Market Return (7%) 10 12 14 17 a. What is the equation for the Security Market Line (SML)? (Hint: First determine the expected market return.)Step by Step Solution
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