Assuming a one-factor model, consider a portfolio composed of three securities with the following factor sensivities: Security

Question:

Assuming a one-factor model, consider a composed of three securities with the following factor sensivities:
Security Factor Sensitivity
1 ....................................... 0.9
2 ....................................... 3.0
3 ....................................... 1.8
If the proportion of security 1 in the is increased by .2, how must the proportions of the other two securities change if the is to maintain the same factor sensitivity?
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...