Solve 2 questions in the attach file in Word and Excel form

1- The table below presents the expected returns and betas for five investment funds.

• Determinethe intrinsic value of Boeing using a three-stage growth model based onthe following expectations (consider using an Excel spreadsheet to doyour calculations):

• Usingthe Large Cap fund and the Small Cap fund, solve for the allocationsneeded to create a zero-market risk portfolio. What isthe rate of returnfor that portfolio?(Hint: βp = w1β1 + w2β2, where w2 = (1-w1)).
• Usingthe Large Cap fund and the Small Cap fund, solve for the allocationsneeded to create portfolio with a beta of one. What is the rate ofreturn for that portfolio? ?(Hint: βp = w1β1 + w2β2, where w2 = (1-w1))
• 2-Determine whether the Index, Value, and Growth funds have return andbeta combinations above or below the line you generated. Explain thearbitrage strategy you would form with each of these funds. Whatconclusions do you draw

• Three growth-rate stages: growth, transition, and mature.
• The stock’s discount rate is 9%.
• Current EPS is $6.41.
• Dividend payout ratio is equal to 30% until the transition period.
• Dividend payout ratio is equal to 50% in the maturity stage.
• Dividend payout ratio decreases by equal annual increment from 30% to 50% during the transition stage.
• Boeing will experience a growth stage for the next 10 years in which its EPS will grow at 10%.
• The length of Boeing’s transitional stage is five years.
• The mature growth period starts in year 16 with an assumed dividend payout ratio of 50% and with a growth rate of 6%.
• The transition period starts in year 11 with the growth rate decreasing by equal annual increments from 10% to 6%.
• The value of Boeing at the beginning of the Maturity stage (Year 16) isdetermined by the constant growth model (Vt =Dt+1/(k − g)).