Q7. A portfolio has an expected return of 13.12%. The portfolio is comprised of 60% stock A and 40% stock B. The risk-free rate of return is 4% and the market risk premium is 8%. The beta of stock B is .87. What is the reward-to-risk ratio of stock A? Explain your answer. Q8. (8 points) Given the following information: The risk-free rate is 7%, the beta of stock A is 1.2, the beta of stock B is 0.8, the expected return on stock A is 13.5%, and the expected return on stock B is 11.0%. Further, we know that stock A is fairly priced and that the betas of stocks A and B are correct. Explain what would happen to stock A and B and Why? Explain (no explanation no credits)