Given the size of your investment ($1300), I'd consider going all in on Ether.
Bitcoin and Ethereum both have very good long term growth opportunity, the challenge is that Ether is way earlier in its run than Bitcoin. With Ether currently trading at ~$250 you can buy more Ether than you can bitcoin and it's the number of "shares", coins you own that will give you real leverage to gain return on investment from any price growth in the future.
It's feasible that Ether gets up to the $2000s level and beyond (just as Bitcoin has). And with a cost bases of $250 you stand to make a 10x return on investment. However it's less likely that Bitcoin would take the same 10x run over the same time period...do you think Bitcoin could hit $25000 in just 3 years?
In the end you need to be happy with your investment, and diversification definitely plays a part. I just wanted to add my thoughts as someone who knows a lot professionally about these sorts of things.
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5) How do I create a wallet? Is the address allocated to me?
Check out this site for a list of a lot of wallet options:
https://bitcoin.org/en/choose-your-walletWelcome to Bitcoin!
Price is not the most important thing, it is the market cap that matters and now that the market cap of bitcoin and ETH are closer then the logical conclusion is that wit will be very difficult for Ethereum to grow 10 times its current price, if you wanted to win that amount of money with Ethereum you are one year too late.