Suppose you have a portfolio that has $100 in stock A with a beta of 0.9, $400

Question:

Suppose you have a that has $100 in stock A with a beta of 0.9, $400 in stock B with a beta of 1.2, and $300 in the risk-free asset. You have another $200 to invest. You wish to achieve a beta for your whole to be the same as the market beta. What is the beta of the added security? Give an example of a firm that may have such a beta.

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...