# Math

Sonny owns \$5,000 worth of High Risk Enterprises (HRE) stock. HRE has a standard deviation of 16 percent and a beta of 2.0. He wants to invest another \$5,000 and create a \$10,000 portfolio that is equally as risky as the overall market. Which one of the following will accomplish his goal?
A. invest the additional \$5,000 in a security that is equally as risky as the market
B. sell HRE and invest the entire \$10,000 in risk-free securities
C. sell HRE and invest \$5,000 in risk-free securities and \$5,000 in a stock that has a standard deviation of 4 percent
D. invest the additional \$5,000 in a stock that has a standard deviation of 4 percent
E. invest the additional \$5,000 in risk-free securities

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