You are building a securities portfolio to be equally risky


Question: You are building a securities portfolio to be equally risky as the market itself. You have decided your portfolio will be equally-weighted among three holdings -- two equity securities and some T-bills. If the beta for the first equity security chosen is (+) 1.2, what must be the beta for the second equity security? (HIint: Don't forget to take into account the beta for your T-bills.)

(-) 0.2

(+) 0.8

(+) 1.2

(+) 1.8

It's impossible to determine from the information provided.

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Finance Basics: You are building a securities portfolio to be equally risky
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