You plan to invest in the Kish Hedge Fund, which has total capital of $500 million invested in five stocks:

Stock	Investment	Beta
A	160 million	0.5
B	120 million	1.2
C	80 million	1.8
D	80 million	1
E	60 million	1.6

Kishs 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:

Probability	Market Return
0.1	-28%
0.2	0
0.4	12
0.2	30
0.1	50

a. What is the equation for the security market line (SML)? (Hint: First, determine the expected market return.)

b. Calculate Kishs required rate of return.

c. Suppose Rick Kish, the president, receives a proposal from a company F seeking new capital. The amount needed to take a position in the stock is $50 million, it has an expected return of 15%, and its estimated beta is 1.5. Should Kish invest in the new company? At what expected rate of return should Kish be indifferent to purchasing the stock?

Please answer all parts as this is a multipart question. Thank you in advance