(Answered) Pleasenbspsubmit in excel1the terrapins investment fund has

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Please submit in Excel

1.The Terrapins Investment Fund has a total investment of $500 million in five stocks.

Stock Investment (millions) Beta

1 $150 .6

2 120 1.2

3 80 3.0

4 90 1.8

5 60 1.0

Total $500

What is the fund's overall, or weighted average, beta?

3. Refer to the previous problem. If the risk-free rate is 12% and the market risk premium is 6%, what is the required return on the Terrapins Fund?

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