Can you please put the answers for B and C into a excel spreadsheet? Please upload a document with the response.

10.6 Suppose that Apex Health Services has four different projects. These projects are listed below, along with the amount of capital invested and estimated corporate and market betas: Amount Corporate Invested Beta Market Project Beta Walk in clinic 1.1 500,000 MRI Facility 1.5 1.5 2,000,000 Clinical Laboratory 0.8 X-ray laboratory 1.0 1.2 1,500,000 1,000,000 0.9 0.5 5,000,000 a. Why do the corporate and market beta differ for the same project? b. What is the overall corporate beta of Apex Health Services? Is the calculated beta consistent with corporate risk theory? c. What is the overall market beta of Apex Health Services? d. How does the riskiness of Apex's stock compare with the riskiness of an average stock? e. Would stock investors require a rate of return on Apex that is greater than, less than, or the same as the return on an average risk stock? Solution: a) The corporate beta indicates the business and financial risk of the project whereas market beta indicates the relationship of return of the project with the market rate of return. b) Walk-in clinic MRI facility Clinical lab. X-ray lab. $500,000 2,000,000 1,500,000 1,000,000 5,000,000 Beta 1.5 1.2 0.9 0.5 Weights 0.1 0.4 0.3 0.2 Overall beta = Beta*weights 0.15 0.48 0.27 0.1 1.00 This shows that the overall risk relationship is perfect with beta equal to 1. c) Walk-in clinic MRI facility Clinical lab. X-ray lab. $500,000 2,000,000 1,500,000 1,000,000 5,000,000 Beta 1.1 1.5 0.8 0. Weights 0.1 0.4 0.3 0.2 Overall beta = Beta*weights 0.15 0.48 0.27 0.1 1.00 d) The market beta indicates that the stock of the company is riskier than the market stock as the beta is greater than 1 and 1.15. This means that the change in the market returns that will affect the return of the company stock by 1.15 times or 115%. The company earns more or less than the stock by 15%. e) There is always tradeoff between risk and return and company beta that the stock is riskier than the average stock, hence the investor would like to get more return than other average stocks