9. Portfolio beta and weights Rafael is an analyst at a wealth management firm. One of his clients holds a $10,000 portfolio that consists of four atocks. The investment allocation in the portolio along with the contribution of riak from each stock is given in the following tobie: Rafael calculated the portfolio's beta as 0.850 and the portfolio's required return as 8.6750%. Rafser thinks it will be a good ldea to realtocote the funds in his elient's portfolio. He recommends replacing Atteric inc.is shares with the same amount in additional shares of Transfer Fuels Co. The risk-free rate is 4%, and the market risk premium is 5.50%. not round your intermediate calculotions.) 0.9009 percentage points 1:3205 percentage points I.1550 percentage points 1.4322 percentsge points Analyes' estimates on expected returns from equity imeitments are based on several factors. These estimations also often include subjective and judgmental fectors, becouse different analysts interpret data in different ways. Suppose, bosed on the earnings consensus of stock analysts, Rafael expects a return of 6.02%6 from the portfollo with the new weights. Does he think that the required return as compared to expected retums is undervalued, overvalued, or fairfy valued? Undervalued Fainly valued overvalued Whalysts' estimates on expected retums from equity investments are based on several factors. These estimations also often include subjective and udgmental factors, because different analysts interpret data in different ways: Suppose, based on the earnings consensus of stock analysts, Rafael expects a return of 6.02% from the portfollo with the new weights, Does he think that the required return as compared to expected returns is undervalued, overvalued, or fairly valued? Undervalued Farty valued Overvalued Suppose instead of replacing Atteric Incis stock with Transfer Fuels Co's stock, Rafael considers replacing Atteric Incis stock with the equal doilar nilocetion to shares of Company X s stock that has a higher beta than Atteric Inc. If everything else remains constant, the portfolio's beta would