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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 21201.2 3803.0
Pleasesubmit in Excel
1.The Terrapins Investment Fund has a total investment of $500 million in five stocks.
StockInvestment (millions)Beta
1$150.6
21201.2
3803.0
4901.8
5601.0
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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