You plan to invest in the Kish Hedge Fund, which has total capital of $500 milion invested in five stocks: Kish's beta coefficient can be found as a weighted average of its stocks' betas. The risk-free rate is 4%, and you believe the following probability distribution for future market returns is realistic: a. What is the equation for the Security Market Une (5ML)? (Ctint: First determine the expected market return.) 1. n=4.3%+(9.1%)bi i II. n=4.396+(8.6%)b. III. n=4.04+(9.1%)b. N.n=3.9%+(9.9%)b V.n=4.0%+(8.6%)bt b. Calculate Kish's required rate of return. Do not round intermediate calculations. Round your answer to two decimal pisces. e. Suppose Rick Kish, the president, recelves a proposal from a company seeking new capital. The amount needed to take a position in the stock is 550 miliion, it has an expected return of 14\%, and its estamated beta is 1.4. Should kish invest in the new company? a. What is the equation for the Security Market Uine (SML)? (Hint: First determine the expected market return.) t. n=4.3%+(9.1%)bi tt. h=4.3%4(8.6%)bi III. r1=4,0%+(9.1%)b1 IV, f1=3.9%+(9.9%)b) V. n=4.0%+(8.6%)b b. Caiculate Kish's required rate of return. Do not round intermediate calculations, Round your answer to two decimal places, c. Suppose Rick Kist, 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 retum of 14%, and its estimated beta is 1.4. Should Kish invest in the new company? The new stock be purchased. At what expected rate of return should Mish be indifferent to purchasing the stock? Round your answer to two decimal placesc