What does the beta of the new security have to be

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You currently own a portfolio valued at $16,000 that has a beta of 1.2. You have another $8,000 to invest and would like to invest it in a manner such that the risk of your portfolio matches that of the overall market. What does the beta of the new security have to be? (Please explain the calculation.)

a. 0.5

b. 0.9

c. 0.8

d. 0.3

e. 0.6

Reference no: EM13876268

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