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 $50 million, it has an expected return of 17%, and its estimated beta is 1.4. Should Kish invest in the new company?

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 0.6 B 120 million 1.1 C 80 million 1.8 D 80 million 1.0 E 60 million 1.5 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 -26% 0.2 0 0.4 11 0.2 31 0.1 51