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9. Portfolio beta and weights Brandon is an analyst at a wealth management fim. One of his clients holds a $5,000 portfolio that consists of

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9. Portfolio beta and weights Brandon is an analyst at a wealth management fim. One of his clients holds a $5,000 portfolio that consists of four stocks. The Investment allocation In the portfolio biong with the contribution of risk from each stock is given in the following tablet Stock Alteric Inc. (A) Arthur Trust Inc. (AT) Corp. (LG) Transfer Fuels Co. (TO Investment Allocation 35% 204 15 Beta Standard deviation 0.900 38.00% 1.500 42.00% 1.300 45.00% 0.400 49.00% 309 Brandon calculated the portfello's beta as 0.930 and the portfolio's required retum as 9.1150% Brandon thinks it will be a good idea to reallocate the funds in his client's portfolio. He recommends replacing Atterle Inc.'s shares with the same amount. In additional shares of Transfer Puela Co The risk-fret rate to 4%and the market risk premium 5.904 According to Brandon's moottinendition, anuming that the market in in equilibrium how much will the portfolio's required return change? (Note: 0 not round your intermediate calculation) 115 percentage points 1:100 percentage points Ontagens 0.9025

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