Kish's beta coefficient can be found as a weighted average of its stocks' betas. The risk-free rete is 4%, and you believe the following probobaity distribution for future market returns is realistic: a. What is the equation for the Security Market Lne (SML)? (tint: First determine the expected market retum.) 1. n=7.1%+(12.2%)b it. n=4.0%+(10.3%)b III. n=5.4%+(6.9%)bi TV.n=4.0%+(12.2%)bi V,n=7.1%+(10.3%)b b. Calculate Kish's required rate of return. Do not round intermedate calculations. Aound vour answer to tho decimal paces. c. Suppote Rack kish, the president, receives a proposal from a company seeking new capital. The amount needed to take a position in the shock is sso mwion, it has an expected return of 16%, and its estimated beta is 1.5 . Should kish invest in the new compsny? The new stock be purchased. A. what expected rate of return should Kith be ind dterent to purchating the stock? Round your anseer to the decimal places