Consider JE Sport, which is currently all$-$equity financed and has a beta of $1.$ The firm has decided to lever up to a capital structure of Debt to Equity ratio of $1/4.$ What is the new beta of its equity?

a$.$

$1\mathrm{.}4$

b$.$

$1\mathrm{.}25$

c$.$

$1\mathrm{.}2$

d$.$

None of the options