financial management II please do ASAP

show working

A. An investor wishes to add now stocles to her portfolio. She has information abort two sssets, Stock A and Stock B. Stock A bas a beta of 1.25 and an expoctod return of 20% Stock 18 has a beta of 0.9 and expected return of 15%. The risk-fice rate is 4.5% and the market risk premium is 15%. Which of these stocks, if any, would you advise the investor to purchase? (6 marlss) B. Huron has been told that diversifying his investments will significantly reduce risk He has therefore invested in two stocks. His portfolio consists of a $1500000 investment in Drugs Limited and $750000 invested in shares of Pharmaceuticals Limited. i. What is the expected return on Huron's portfolio? (9marks) 1i. Advise Huron as to the effectiveness of his diversification strategy. (3mith)