e$)$ Suppose that the world beta $($in GBP$)$ for Lake District Generators $($LDG$)$ stock equals $0\mathrm{.}7,$ and its exposures to the USD and the EUR are $0\mathrm{.}05$ and $0\mathrm{.}1,$ respectively. REQUIRED: i$.$ What is the best replicating portfolio of GBP $\backslash (1$ m $\backslash )$ investment in LDG if you can invest in a world$-$market index fund, as well as in USD, EUR and GBP$?[7$ marks$]$ ii$.$ What is LDG$\text{'}$s cost of capital assuming that risk$-$free interest equal $\backslash (1\backslash \%\backslash )$ in all relevant countries, the world$-$market risk premium is $\backslash (7\backslash \%\backslash )$ and both foreign currencies are expected to appreciate $\backslash (0\mathrm{.}5\backslash \%\backslash )$ p$.$a$.$ against GBP$?[6$ marks$]$