9. Portfolio beta and weights Gregory 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: Gregory calculated the portfolio's beta as 0.840 and the portfolio's required return as 12.3000%. Gregory thinks it will be a good idea to reallocate the funds in his dient's portfolio. He recommends replacing Atteric Inc.'s shares with the same amount in additional shares of Baque C0. The risk-free rate is 6%, and the market risk premium is 7.50%. According to Gregory'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.) 0.2048 percente points 0.2625 percentage points 0.3255 percentage points 0.3019 percentage points Analysts' 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 earnings consensus of stock analysts, Gregory expects a return of 13.54% from the portfolio with the new weights. Does he think that the required return as compared to expected returns is undervalued, overvalued, or fairly valued? Undervalued Overvalued Fairly valued Suppe I replacing Atteric Inc.'s stock with Baque Co.'s stock, Gregory considers replacing Atteric Inc.'s stock with the equal dollar allocation to sha sny Xs stock that has a higher beta than Atteric Inc. If everything else remains constant, the required retum from the portfolio would