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Suppose you have a portfolio that has $140 in stock A with a beta of 0.89, $560 in stock B with a beta of 1.19,
Suppose you have a portfolio that has $140 in stock A with a beta of 0.89, $560 in stock B with a beta of 1.19, and $420 in the risk-free asset. You have another $280 to invest. You wish to achieve a beta for your whole portfolio to be the same as the market beta. What is the beta of the added security? (round intermediate calculations and the final answer to 3 decimal places)
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