please explain each step and use excel format

6. How diversification reduce the risk? What type of risk can diversification reduce? 7.Calculate mean and standard deviation for the following asset. Economic State Return Probability Recession -20% 20% Normal 18% 50% Boom 35% 30% 5. Tri Co. has the following cost of debt structure: W 0% 20% 30% 40% 50% 0.0% 9.0% 10.0% 11.0% 12.0% d The market risk premium is 4.5%, the risk free rate is 5%, beta of unleveraged firm is 1.20, Hamada's equation b= bu [1 + (1 - T)(ws/we)]. Tax rate T = 40%. Please use the above information to answer following questions: a. If the firm uses 40% debt, what is the cost of equity of the firm, based on CAPM model? b. What is WACC of the firm? c. If FCF0 = 150 million, g=3%, what is the firm value