b$)$ Currently, you can buy SPM shares at a price of $$35$ per share and HFP shares at a price of $$42$ per share. Neither SPM nor HFP pays dividends. You have insider information which suggests that in a year from today SPM shares are expected to be valued at $$39\mathrm{.}20$ while the shares of HFP are expected to be worth

$$48\mathrm{.}30.$ If you want to invest in SPM or in HFP but not both, which one would you choose and why? $(5$ marks$)$ Hint: Estimate the realized return based on your insider information and analysis and then determine which security would give you the best reward$-$to$-$risk ratio.