9. Portfolio buta and weights Brandon is an analyst at a wealth Management frem. One of his clients holds a $5,000 portfolio that consists of four stock. The investment allocation in the portfolio along with the contribution of risk from each stock is given in the following table: Stock Alle Inc. (AL) Arthur Trust Inc. (AT) LiCorp. (LC) Transfer Fuel Co. (TF) Investment Allocation Beta Standard Deviation 0.900 38,00 1.500 1.300 0.400 Brandon calculated the portfolios beta 0.930 and the portfolios required retium as 9.11504 Brandon thinks it will be a good idea to reallocate the funds in his dient's portfolio. He recommends replacing Altari Ine's shares with the same amount in additional shares of Transfer Fuel C. The risk-free rate is 4%, and the market riik premium is 5.50% According to Brandon's recommandation, assuming that the market is in equilibrium, how much will the portfolios required return changa? (Note: De nord your intermediate calculations.) O 1.1060 percentage points O 0.750 percentage points O 0.0625 pcntage points O 1.1935 percentage points Analysts'estimates can expected returns from equity investments are based on several factors. These estimation also often include subjective and judgmental factors, because different analysis interpret data in different ways. Suppose, based on the earnings consists of stock analysts, Brandon espects a return of 9.659 from the portfolio with the nights. Does he think that the required return as compared to expected returns is undervalued overvalud, ce fairly valued? O Overval O Undervalued O Fairly valued Suppose instead of replacing Allaric Inc.'s stock with Transfer Fusce stock, Brandon considers replacing Alle Inc. stock with the equal dollar allocation to shares of Company's stock that has a higher beta than Aldric Inc. If everything else remains constant, the portfolio's risk would