Answer:
2
Step-by-step explanation:
Beta measures systemic risk
The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors
The market has a beta of one. If a portfolio has the same level of systematic risk that is the same as that of the market, its beta would be equal to 1.
If the portfolio is less risky than the market, its beta would be less than one
If the portfolio is more risky than the market, its beta would be greater than one
The beta of a risk free asset is zero
The portfolio's beta can be determined by adding together the weighted beta of each stock in the portfolio
1 = (1/3 x 1) + (1/3 x 0) + (1/3 x s)
1 = 1/3 + (1/3 x s)
1 - 1/3 = 1/3s
2/3 = 1/3s
s = 2/3 x 3 = 2