Use the provided data to explore the risk-return relation and the concept of beta for Apple stock, Kroger stock, and the S\&P 500 index. Part 1: Risk and Beta Question 1) Calculate the return each year for Apple, Kroger, and the Market using the equation: Return = (Value this year - Value last year) / Value last year. In addition, use the Excel function "Average" to find the average of the returns. Question 2) Calculate the standard deviation of rates of return for Apple, Kroger, and the Market using the "Stdev" Excel function. Question 3) Make a scatter plot of stock returns ( y-axis) against market returns ( x-axis) for both Apple and Kroger stock in one plot. Add a linear trend line to the scatter plot for each stock and include the equation on the chart (Select a data point and right click, then select "add trendline" and choose a "linear" trend and select "display equation on chart"). Label the y-axis, x-axis, legend, and chart title. Question 4) For each stock, use the Excel function "Correl" to calculate the correlation between the stock returns and market returns. Furthermore, copy the standard deviations from above (by cell reference) and calculate the beta according to the equation: Beta =( Standard deviation of stock / Standard deviation of market )( Correlation between stock and market). Part 2: Required Return Question 5) Calculate the expected return on the market according to: Expected Return on Market = Risk-Free Rate + Market Risk Premium. Also calculate the required return for Apple and Kroger according to: Required Return = Risk-Free Rate + (Beta)(Market Risk Premium). Question 6) Assume you formed a portfolio that consisted of 60% Apple stock and 40% Kroger stock. Calculate the beta. Question 7) Consider a four-stock portfolio with 25% of the value invested in Apple, 15% of the value invested in Kroger, 40% of the value invested in Microsoft, and 20% of the value invested in Tesla. Microsoft has a beta of 0.57 and Tesla has a beta of 2.00. Calculate the portfolio beta of the four-stock portfolio. Question 8) Calculate the required return of the four-stock portfolio AVERAGE Function Excel 66 Part 2: Required Return