IBM has a beta of 0.70. (a) What is the beta of the risk free asset? (Remember: the beta of an asset tells you how much this asset moves when the market moves...)

(b) What is the beta of the market portfolio?

(c) What is the beta of a portfolio which invests $200 in IBM and $100 in the riskfree asset?

(d) What is the beta of an asset which invests $200 in IBM and goes short $100 of the market portfolio?

(e) Investors frequently want to create portfolios which has no exposure to market risk: i.e., a portfolio whose value wont change if the market moves. They want to create a portfolio which has a beta of 0. If I want to create a zero-beta portfolio by investing in two assets, IBM and the market, and I want to invest $500 in IBM, how much should I invest in (or go short) the market?