9. Portfolio beta and weights Brandon is an analyst at a wealth management firm. One of his clients holds a $5,000 portfolio that consists of four stocks. The investment allocation in the portfolio along with the contribution of risk from each stock is given in the following table: Stock Investment Allocation 359 Beta Standard Deviation 39.00 0.750 20 1.500 Atteric Inc. (AI) Arthur Trust Inc. (AT) u Corp. (LC) Baque Co. (C) 42.000 15% 1.100 45.000 30% 0.300 49.00 Brandon calculated the portfolio's beta as 0.010 and the portfolio's required return as 3,4990% Brandon think it will be a good idea to reallocate the funds in his client's portfolio. He recommends replacing Atterie Inc. share with the same amount in additional shares of Baque co. The nuk tree rate is 4%, and the market fisk premium is 6.30, story According to Brandon's recommandation, assuming that the market te in equilibrium, how much will the portfolios required retum change? Note: not round your intermediate calculations.) 10:02 AM Module 5 Bonus Problem Set According to Brandon's recommendation, assuming that the market is in equilibrium, how much will the portfolio's required return change? (Note: Do not round your intermediate calculations.) O 1.0776 percentage points O 0.9994 percentage points O 0.6776 percentage points 0.8690 percentage points Analyuta estimates on expected returns from equity investments are based on several factors. These estimations also often include subjective and judgmental factors, because different analysts interpret data in different ways Suppose, based on the eamings consensus of stock analysts, Brandon expects a return of 6.13% from the portfolio with the new weights. Does the think that the required return as compared to expected returns is undervalued overvalued, or fairly valueid? ary Overvalued Fairly valued Undervalued ctory Suppose instead of replacing Atteric Inc.'s stock with Baque Costock, Brandon considers replacing Atterie Inc.'s stock with the equal dollar allocation to shares of Company X4 stock that has a higher beta than Atteric Inc. If everything else remains constant, the portfolio's beta would Grade It Now Save & Continue