Scenario:

You are a financial advisor working with a client named Sarah, a $35-$year$-$old professional looking to invest a significant amount of her savings. Sarah owns an investment portfolio of $$1$ million invested in a zero$-$coupon Treasury bond that matures in $5$ years and is considering some alternative investment options, like stocks. She has approached you for advice on making the

best investment decision that balances risk and return.

The economists at your firm just released a macroeconomic outlook report, expecting interest rates to continue rising in the near future, and provided you with the scenario data for the bond held by Sarah in Table $1.$ At the same time, the equity research team at your firm has gathered the historical return data $(2013-2022)$ for two candidate stocks and the overall stock market in Table $2.$ Calm Foods Inc. is a national producer and distributor of farm products. Advanced Tech

Inc. is a semiconductor company that designs, manufactures, develops, and markets highperformance computing technologies.

Your initial task is to conduct a thorough quantitative analysis of the risk and return profile of Sarah's existing bond portfolio and convey your conclusions to her. Note that Sarah has a limited background in Finance, so it's essential to elucidate the fundamental concepts associated with your findings.

How do I calculate the risk and return? Provide a detailed quantitative analysis for Sarah to understand. Please show all work and steps as well as how to calculate in excel.