1.Given a portfolio worth $1,000 consists of stocks A and B plus a third risk-free asset C ( = 0); $400 is invested in stock A (only) with beta of 1.3 and stock B with a beta of 0.7. How much needs to be invested in stock B if you want a portfolio beta of 0.90?

a$0

b$268

c$482

d$534

e$543

explain the work as well