the kish investment fund in which you plan to invest some money has total capital of 4375914

The Kish Investment Fund, in which you plan to invest some money, has total capital of $500 million invested in five stocks: The beta coefficient for a fund like Kish Investment can be found as a weighted average of the fund’s investments. The current risk-free rate is 6 percent, whereas market returns have the following estimated probability distribution for the next period: PROBABILITY MARKET RETURN 0.1 ………………………………… 7% 0.2 ………………………………… 9 0.4 ………………………………… 11 0.2 ………………………………… 13 0.1 ………………………………… 15 a. What is the estimated equation for the Security Market Line (SML)? b. Calculate the fund’s required rate of return for the next period. View Solution:
The Kish Investment Fund in which you plan to invest

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