An investment portfolio includes stock A and B. The relevant figure are: Assume that the risk free rate of interest is 2% and that the market return is 12%. Required Calculate the portfolio expected return and the portfolio beta. (6%) According to the Capital Asset Pricing Model (CAPM), which stock(s) will bring benefits to investor? Why? Calculate the reward-to-risk ratio of stock A. Assume firm A just paid dividend of $ 1.5 and the dividend growth rate is 5%. What is the intrinsic value of the common stock? If the current price of stock A is $22. Would you buy more or sell stock A? Why