You own a portfolio which is invested equally in two stocks and a risk-free security. The stock betas are .89 for Stock A and 1.26 for Stock B.

You own a portfolio which is invested equally in two stocks and a risk-free security. The stock betas are .89 for Stock A and 1.26 for Stock B. Which one of the following will increase the portfolio beta, all else constant?  increasing the amount invested in the risk-free securitydecreasing the weight of Stock B and increasing the weight of Stock Areplacing Stock A with a security that has a beta of .77increasing the weight of Stock A and decreasing the weight of the risk-free securityreplacing Stock B with Stock C, which has a beta equal to that of the market