Please see attached document. This has to be done in an excel format. This is review for a mid term. Thank you. Risk, Return, and the Capital Asset Pricing Model As a first day intern at Tri-Star Management Incorporated the CEO asks you to analyze the following information pertaining to two common stock investments, Tech.com Incorporated and Sam's Grocery Corporation. You are told that a one-year Treasury Bill will have a rate of return of 5% over the next year. Also, information from an investment advising service lists the current beta for Tech.com as 1.68 and for Sam's Grocery as 0.52. You are provided a series of questions to guide your analysis.Estimated Rate of Return. Economy Probability Tech.com Sam's Grocery S&P 500 Recession 30% -20% 5% - 4% Average 20% 15% 6% 11% Expansion 35% 30% 8% 17% Boom 15% 50% 10% 27% Assignment 1. Calculate the expected rate of return for Tech.com Incorporated, Sam's Grocery Corporation, and the S&P 500 Index. 2. Calculate the standard deviations in estimated rates of return for Tech.com Incorporated, Sam's Grocery Corporation, and the S&P 500 Index. 3. Which is a better measure of risk for the common stock of Tech.com Incorporated and Sam's Grocery Corporation-the standard deviation you calculated in Question 2 or the beta? 4. Based on the beta provided, what is the expected rate of return for Tech.com Incorporated and Sam's Grocery Corporation for the next year? 5. If you form a two-stock portfolio by investing $30,000 in Tech.com Incorporated and $70,000 in Sam's Grocery Corporation, what is the portfolio beta and expected rate of return? 6. If you form a two-stock portfolio by investing $70,000 in Tech.com Incorporated and $30,000 in Sam's Grocery Corporation, what is the portfolio beta and expected rate of return? 7. Which of these two-stock portfolios do you prefer? Why? Risk, Return, and the Capital Asset Pricing Model As a first day intern at Tri-Star Management Incorporated the CEO asks you to analyze the following information pertaining to two common stock investments, Tech.com Incorporated and Sams Grocery Corporation. You are told that a one-year Treasury Bill will have a rate of return of 5% over the next year. Also, information from an investment advising service lists the current beta for Tech.com as 1.68 and for Sams Grocery as 0.52. You are provided a series of questions to guide your analysis. Estimated Rate of Return . Economy Probability Tech.com Sams Grocery S&P 500 Recession 30% 20% 5% 4% Average 20% 15% 6% 11% Expansion 35% 30% 8% 17% Boom 15% 50% 10% 27% Assignment 1. Calculate the expected rate of return for Tech.com Incorporated, Sams Grocery Corporation, and the S&P 500 Index. 2. Calculate the standard deviations in estimated rates of return for Tech.com Incorporated, Sams Grocery Corporation, and the S&P 500 Index. 3. Which is a better measure of risk for the common stock of Tech.com Incorporated and Sams Grocery Corporationthe standard deviation you calculated in Question 2 or the beta? 4. Based on the beta provided, what is the expected rate of return for Tech.com Incorporated and Sams Grocery Corporation for the next year? 5. If you form a two-stock portfolio by investing $30,000 in Tech.com Incorporated and $70,000 in Sams Grocery Corporation, what is the portfolio beta and expected rate of return? 6. If you form a two-stock portfolio by investing $70,000 in Tech.com Incorporated and $30,000 in Sams Grocery Corporation, what is the portfolio beta and expected rate of return? 7. Which of these two-stock portfolios do you prefer? Why?