Show me the steps to solve A mutual fund manager has a $$90\mathrm{.}0$ million portfolio with a beta of $1\mathrm{.}20.$ The risk$-$free

rate is $4\mathrm{.}00\%,$ and the market risk premium is $5\mathrm{.}00\%.$ The manager expects to receive an

additional $$30\mathrm{.}0$ million which she plans to invest in a number of stocks. After investing

the additional funds, she wants to reduce the portfolio$$s risk level so that once the

additional funds are invested the portfolio$$s required return will be $9\mathrm{.}90\%.$ What must

the average beta of the new stocks added to the portfolio be to achieve the desired

required rate of return?

a$.0\mathrm{.}78$

b$.0\mathrm{.}85$

c$.1\mathrm{.}00$

d$.1\mathrm{.}12$

e$.1\mathrm{.}18$