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please solve number 3 Question 3. (20 points) A mutual fund manager has a $400,000 portfolio with a beta of 1.2. Assume that the return

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Question 3. (20 points) A mutual fund manager has a $400,000 portfolio with a beta of 1.2. Assume that the return on the market portfolio is rM=9% and the risk-free rate is rRF=4%. The manager wants to invest some additional $100,000 in some new portfolio so that their final portfolio will have a required rate of return of 11%. What should be the beta of the new portfolio to ensure that the final portfolio has a required rate of return of 11%

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