Kish's beta coefficient can be found as a weighted average of its stocks' betas. The risk-free rate is 5%, and you believe the following probability distribution for future market returns is realistic: a. What is the equation for the Security Market Line (SML)? (Hint: First determine the expected market return.) 1. n =4.5%+(7.7%)b i II. n=4.5%+(6.9%)b III. n=5.0%+(7.7%)b IV. n=1.9%+(6.3%)b v1n=5.0%+(6.9%)b 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 peesident, receives a proposal from a company seeking new capital. The amount needed to take a position in the stock is s50 maich, it has an expected return of 15%, and its estimated beta is 1.4. Should Kish invest in the new company? The new stock be purchased. a. What is the equation for the Security Market Line (SML.)? (Hint: First detemine the expected market return.) 1. n=4.5%+(7.7%)b. II. n=4.5%+(6.9%)bi tIt. n=5.0%+(7.7%)bi TV,n=4.9%+(6.3%)br v,f=5,0%+(6.9%)b b. Calculate Kish's required rate of return. Do fot round intermediate calculations. Round your answer to two decimal places. c. Suppose Rick tish, the president, recelves a proposal from a company seeking new capital. The amount needed to take a position in the stock is $50 milion, it has an expected return of 15%, and its estimated beta is 1.4, Should kish invest in the nen company? The new stock be parchased. At what expected rate of return sheuld kish be ind lferent to purchasing the stock? Round your answer to two decimal daces