Please solve using specified instructions

Problem 8-23 You are putting together a portfolio made up of four different stocks. However, you are considering two possible weightings: Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the green cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. Given Data: Portfolio Weightings Asset Beta First Portfolio 40% 10% 40% Second Portfolio 10% A B 40% 2.5 1.0 0.5 -1.5 10% 40% 10% a. What is the beta on each portfolio? First Portfolio Second Portfolio Portfolio beta b. Which portfolio is riskier? According to the portfolios betas, is riskier. c. If the risk-free rate of interest were 4 percent and the market risk premium were 5 percent, what rate of return would you expect to earn from each of the portfolios? Risk-free rate Risk premium 4% 5% First Portfolio Second Portfolio Expected rate of return of the portfolio 2 Requirements 1 Start Excel In cell E16, by using cell references and the Excel SUMPRODUCT function, calculate the beta of the first portfolio. (1 pt.) In cell F16, by using cell references and the Excel SUMPRODUCT function, calculate the beta of the second portfolio. (1 pt.) 4 In cell E20, choose from the drop-down menu and interpret the betas of the two portfolios. (1 pt.) 5 In cell E28, by using cell references, calculate the expected rate of return of the first portfolio. (1 pt.) 6 In cell F28, by using cell references, calculate the expected rate of return of the second portfolio. (1 pt.) 7 Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed. 3