You Own Three Stocks Which Have Betas of 1

Multiple Choice

You own three stocks which have betas of 1.16,1.34,and 1.02.You would like to add a fourth security such that your portfolio beta will match that of the market.Given this situation,the new security:

A) must have a beta of 1.0.
B) must have a beta of zero.
C) could be a U.S. Treasury bill.
D) could have any beta greater than 1.0.
E) must have a portfolio weight of 50 percent or more.