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 A $160 million 0.5 120 million 1.6 C 80 million 2.0 D 80 million 1.0 60 million 1.7 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 Market Return 0.1 -25% 0.2 0 0.4 12 0.2 32 0.1 46 a. What is the equation for the Security Market Line (SML)? (Hint: First determine the expected market return.) I. n = 4.6% + (10.3%) II. - 4.6% + (12.3%) III. - 3.0% + (10.3%), IV. 1) - 2.9% + (9.5%) V.1 = 3.0%+ (12.3%) -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 550 million, it has an expected return of 14%, 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