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Now you have $1,000,000 to invest. If you invest $195,000 in stock A (beta is 0.32), and invest $340,000 in stock B (beta is 0.8).
Now you have $1,000,000 to invest. If you invest $195,000 in stock A (beta is 0.32), and invest $340,000 in stock B (beta is 0.8). Then you invest $135,000 in risk-free asset and invest the rest money in stock C. Whats the beta of stock C? You can regard investment value as expected value here.
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