As the Finance Director of a large charity, you have $1,000,000 to invest in two stocks:
Security
Beta
Expected Return
Andropov Holdings
1.75
0.168
Brezhnev Industries
0.89
0.109
Your investment goal is to create a portfolio from these two stocks with an expected return of 14%. How much will you invest in each stock? What is the Beta of the portfolio? With regards to risk as measured by Beta, how does this portfolio compare to the market portfolio?