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You plan to invest the Kish Hedge Fund , which has total capital of $ 5 0 0 million invested in five stocks : Stock
You plan to invest the Kish Hedge Fund which has total capital of $ million invested in five stocks : Stock Investment Stock's Beta Coefficient A $ million million D million E million Kish's beta coefficient can be found as a weighted average of its stocks betas The risk free rate future market returns is realistic : and you believe the following probability distribution for Probability Market Return a What is the equation for the Security Market Line SML Hint : First determine the expected market return IV V b nb ; n b; r b; rl blSelect b Calculate Kish's required rate of return Do not round intermediate calculations Round your answer to two decimal places 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 million has an expected return of and its estimated beta is 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
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