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 $160 million 0.3 120 million 80 million 1.7 80 million 1.0 60 million 1.8 Kish's beta coefficient can be found as a weighted average of its stocks' betas. The risk-free rate is 7%, and you believe the following probability distribution for future market returns is realistic: Probability Market Return 0.1 -27% 0.2 0.4 11 0.2 0.1 a. What is the equation for the Security Market Line (SML)? (Hint: First determine the expected market return.) I. n = 7.0% + (5.2%)b II. r = 9.4% + (6.1%) III. n = 7.0% + (6.0%)b IV. n = 6.0% + (5.2%)b V. n = 6.0% + (6.0%) -Select- b. Calculate Kish's required rate of return. Do not round intermediate calculations. Round your answer to two decimal places. C. Suppose Rick Kish, the president, receives a proposal from a company seeking new capital. The amount needed to take a position in the stock is $50 million, it has an expected return of 16%, and its estimated beta is 1.4. Should Kish invest in the new company? The new stock -Select- be purchased. At what expected rate of return should Kish be indifferent to purchasing the stock? Round your answer to two decimal places. c. Suppose Rick Kish, the president, receives a proposal from a company seeking new capital. The amount needed to take a position in the stock is $50 million, it has an expected return of 16%, and its estimated beta is 1.4. Should Kish invest in the new company? The new stock -Select- be purchased. At what expected rate of return should Kish be indifferent to purchasing the stock? Round your answer to two decimal places