Gross Present Value and Beta Factor
Hi,
I am supposed to repeat a Financing Management Module and I am a bit stuck with the following question, I am not too sure how to deal with the Beta Factor? Any help is greatly appreciated.

Question
Alpha plc has an opportunity to invest in a project that would last one year. Lamda plc has three projects, each of which would last for a year. The three projects are located within different industrial sectors. It is expected that, over the coming year, the market rate of return will be 6% and the riskfree rate of interest will be 2%.
The projectsâ anticipated net cash flows (forecast to be receivable at the end of the year), together with their corresponding beta factors are as follows
Alpha plc
Â£000  Beta factor
1,000  1.3
Lamda plc
Â£000  Beta factor
400  1.4
200  0.7
400  1.5
Required
(a) Calculate the gross present value of the projects that can be undertaken by Alpha plc and Lamda plc;
(b) Calculate the beta factor for the threeproject portfolio open to Lamda plc;
