Problem
You have a total of $800 to invest. Currently, your portfolio consists of $100 invested in stock A with a beta of 1.4 and $300 in stock B with a beta of .6. For the remaining $400, you want to divide it between stock C with a beta of 1.6 and a risk-free asset. If you want your portfolio beta to be 1.10, how much should you invest in stock C?