You manage the MSB portfolio of $$30$ million. The portfolio has a beta of $1\mathrm{.}2$ and a required return of $12$ percent. MSB receives an $$14$ million additional to invest in the

portfolio. You invest this new money in a stock with a beta of $2\mathrm{.}2.$ The risk$-$free rate is $5$ percent. What is the required return on the total portfolio after the addition of new

funds?

A$.12\mathrm{.}19\%$

B$.12\mathrm{.}49\%$

C$.12\mathrm{.}88\%$

D$.13\mathrm{.}33\%$

E$.13\mathrm{.}86\%$

F$.14\mathrm{.}43\%$

G$.15\mathrm{.}06\%$

H$.15\mathrm{.}73\%$