The green spaces has to be evaluated and answered.

Directions: Using the functions of Excel, solve each of the problems. Problem #1 A. What is the beta of a portfolio with the following information: R Rf 23% Required rate of return 7% Risk-Free rate 18% Expected rate of return for market Rm R = Rf +B X (Rm RE) +B +B Beta B. Is this portfolio more risky or less risky than the market? Problem #2 A. A company has cost of equity of 8% and a dividend growth rate of 3%. Its dividends for next year is $2.20 per share. What should the stock's price be? P D1 (r-g) P = B. If the cost of equity dropped to 4%, what would the new stock price be? P D1 (r-g) P C. Would the drop in equity create a favorable or unfavorable situation for stockholders? Why