Use the following information to answer the next two questions.

Drayton McLane sold the Astros a while back for about $$645$ Million. $($You can assume he sold it at the end of

$2011).$ He originally purchased the team at the end of $1992$ for $$117$ million. Back in $1992$ the S&P $500$ stock market index was at about $$30$ and it was about $$120$ at the end of $2011($adjusted for splits and dividends$).$ You can assume the yield on US treasuries was about $4\%$ over the period and the expected market risk premium was $5\mathrm{.}5\%.$ Also, forget about any other cash flows from ownership rights, franchise fees, subsidies for the stadium etc. Assume the whole deal was $100\%$ equity.

$1.$ Based on only the purchase and sale prices, what was Drayton's compound annual growth rate $($CAGR$)$ on his investment? Answer in percent so if you think the answer is $36\%$ enter $36.$

$2.$ Assuming the Astros have a beta of $1,$ was the project a good deal on a risk adjusted basis?

$$ Yes. The CAGR beats the S&P

$$ No$.$ The CAGR beats the S&P

$$ No$.$ The CAGR is below the S&P

$$ We don't have enough information to tell

$$ The beta is not big enough to outperform the marekt