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Suppose you have a portfolio that has $502 invested in stock A with a beta of 1.19, $294.4 invested in stock B with a beta
Suppose you have a portfolio that has $502 invested in stock A with a beta of 1.19, $294.4 invested in stock B with a beta of 0.93, and $203.6 invested in the risk-free asset. You have another $344 to invest. You wish your whole portfolio, after investing the remaining funds, to have the same beta as the market beta. What will the beta of the added security need to be, to achieve that goal?
The beta of the added security need to be: ________
(Please retain at least 4 decimal places in your calculations and 2 decimal places in the final answer)
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