S Doninvest the fourth in General Motors Company and remainder in Nestle Corporation. The expected room from General Motors Connente Carrion 101 respectively. While the standard deviation from General Motor Company and Nestle Corporation is 0% and 7%, respective a. Calculate the expected return of a portfolio and portfolio risk if correlation between the two stocks is 0.5 (1-2.55 mars b. I Don adds more stocks from different sectors in his portfolio what will happen (increase, decrease remain same) to portfolio rakBrilyantly your who ton required (0.5+1=1,5marks) OR Given the following data about the hypothetical company Pharma Care Inc. Beta25 Mark Risk Premium 4.5% Expected Return on the Market Portfolio 8% a. Calculate the required return using Capital Asset Pricing Model (CAPM) equation (3.5 marks) b. For this part only. If the number of the stocks increases, what will be the effect increase, decrease, remain same) on systematic risk? Briefly Justify your answer. No caldiation required. (0.5+1 -1.5 marks)