ANSWER QUESTION 4 AND 5 PLEASE.

Expected Rate of return
Scenario	Probability	T-Bills	S&P 500	Utility Company	High-Tech Company	Counter-Cyclical Company
Recession	20%	5%	-10%	6%	-25%	20%
Near Recession	20%	5%	-6%	7%	-20%	16%
Normal	30%	5%	12%	9%	15%	12%
Near Boom	10%	5%	15%	11%	25%	-9%
Boom	20%	5%	20%	14%	35%	-20%

Based on the above returns, Jenna calculated the betas of the three stocks as follows:

Beta of Utility Company = 0.22

Beta of High-Tech Company = 2.02

Beta of Counter-Cyclical Company = -1.13

Imagine you are Jenna. Prepare a report for Kevin to help him understand the concepts of risk and return. Include the following things in your report (dont just copy from the textbook, explain things in your own words):

4) If Kevin decided to invest his money equally in high-tech and counter-cyclical stocks, what would his portfolios expected return and risk level be? Calculate the expected return and the beta of this portfolio to answer the question.

5) What would happen if Kevin were to put 70% of his portfolio in the high-tech stock and 30% in the S&P 500 Index fund? Would this combination be better for him? Explain. Calculate the expected return and the beta of this portfolio to answer the question.