You have a friend who tells you that they are an aggressive investor. They would like your advice for choosing 2 stocks to invest in. They currently have a portfolio of 3 stocks with the following allocations, betas and expected return.

Stock 1: allocation 30%, beta 0.85, and expected return 12%

Stock 2: allocation 10%, beta 1.3, and expected return 15%

Stock 3: allocation 60%, beta 1, and expected return 8%

What 2 stocks would you recommend adding to this portfolio and why? Be sure to discuss how you measure Risk, the Expected return for the portfolio, and how that compares with the actual returns