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Rockville Bank is reviewing its loan portfolios to estimate howdiversified their portfolios are. For internal purposes, the Bankassesses credit risk into four categories – High Quality, AverageQuality, Poor Quality, and Default. Over the years, the followingtransition matrix has evolved:From/toHighAveragePoorDefaultHigh80%15%4%1%Average10%65%20%5%Poor5%15%55%25%For example, a loan rated High Quality this year has a 80%probability of remaining High Quality next year, a 15% probabilityof falling to Average Quality, and so on.Based on this data, ifThis year the portfolio contains $1,050M of High Quality, $325Mof Average Quality, and $85M of Poor Quality loans, giving a totalloan portfolio of $1,460M.a. Estimate the loan portfolio mix in one year.b. Suppose the bank wishes to maintain the current relative mixof credit type, High, $1,050M/$1,460M = 72%, Average, $325M/$1,460M= 22%, and Poor, $1,050M/$1,460M = 6%. How many new loans and ofwhat type must the bank sell during the year to maintain thisrelative mix?