ulie wants to create a $$5,000$ portfolio. She also wants to invest as much as possible in a high risk stock with the hope of earning a high rate of return. However, she wants her portfolio to have no more risk than the overall market. Which one of the following portfolios is most apt to meet all of her objectives?

Multiple Choice

Invest the entire $$5,000$ in a stock with a beta of $1\mathrm{.}0$

Invest $$2,500$ in a stock with a beta of $1\mathrm{.}98$ and $$2,500$ in a stock with a beta of $1\mathrm{.}0$

Invest $$2,500$ in a risk$-$free asset and $$2,500$ in a stock with a beta of $2\mathrm{.}0$

Invest $$2,500$ in a stock with a beta of $1\mathrm{.}0,$ $$1,250$ in a risk$-$free asset, and $$1,250$ in a stock with a beta of $2\mathrm{.}0$

Invest $$2,000$ in a stock with a beta of $3,$ $$2,000$ in a risk$-$free asset, and $$1,000$ in a stock with a beta of $1\mathrm{.}0$