Suppose you have a portfolio that has $120 in stock A with a beta of...
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Suppose you have a portfolio that has $120 in stock A with a beta of 1.07, $480 in stock B with a beta of 0.67, and $360 in the market portfolio. You have an additional $240 to invest. You want to achieve a beta for your whole portfolio to be the same as the risk-free asset.
What is the beta of the added security?
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