Question 2: You plan to invest in the Ness Hedge Fund, which has a total capital of $500 million invested in five stocks. The stocks and their respective investments are: GOOG with $160 million; APPL with $120 million; WMT with $80 million; COST with $80 million; and APPS with $60 million. The respective beta coefficients for these stocks are 1.5, 1.25, 0.47, 0.64, and 2.45. Based on the market outlook, you believe the following: The risk-free rate is 4%, and the future market returns of: Probability 10% 20% 30% 30% 10% Market Return -28% 3% 12% 30% 50% Address the following: A. What is Ness's portfolio beta? Assume a weighted average approach. B. What is the market risk premium? C. What is Ness's required rate of return? D. Suppose the president of Ness Hedge fund has tasked to you to decide whether to take a position or not in ALPA, a company promising an expected return of 17% with a beta of 1.75. Will you invest or not in ALPA? Explain