You pian to invest in the Kish. Hedge Fund, which has total capital of 5500 million invested in five stocks: Kish's beta coefficient can be found as a weighted average of its stocks' betas. The risk-free rate is 6%, and you believe the following probability distribution for future market returns is realistic: a. What is the equation for the Security Market Line (SML)? (Hint: First determine the expected market return.) 1. n=5.7%+(8.5%)b) It, ri=6.0%+(9.2%)br 1II. n=6.2%+(8.4%)b TV,n=6.2%+(9.2%)br y.n=6.0%+(8.4%)b b. Calculate Kish's required rate of retum. De not round intermediate calculations. Round your answer to two decimal places. 40 c. Suppose fick Kish, the president, receives a proposal froen a company seeking new capital. The amount neeced to take a position in the stock is s50 inillion, it tias an expected return of 14\%. and its estimated beta is 1.4. Should kesh invest in the new compony? The new stock be purchased. At what expected rate of return should kish be ind iterent to purchas ing the stock? Hound your answer to two decmal pleces