Suppose that the world beta for a German stock (in euro) equals 1.5, and its exposures to

Question:

Suppose that the world beta for a German stock (in euro) equals 1.5, and its exposures to the dollar, the yen, and the pound are 0.3, 0.2, and 0.1, respectively.
(a) What is the best replicating if you can invest in a world-market index fund, as well as in dollars, yens, pounds, and euros?
(b) What additional information is needed to identify the cost of capital?
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...