Amy is an analyst at a wealth management firm, One of her 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: Amy calculated the portfolio's beta as 0.868 and the portfolio's expected return as 12.51%6. Amy thinks it will be a good idea to reallocate the funds in her client's portfolio. She recommends replacing Atteric Inc:'s shares with the same amount in additional shares of Transfer Fuels Co. The risk-free rate is 6.00%, and the market risk premium is 7.50%. According to Amy's recommendation, assuming that the market is in equilibrium, how much wil the portfolio's required return change? 0.92%1.06%1,14%0.729% Analysts' estimates on expected returns from equity investments are based an several factors. These estimations also often include subjective and judgmental factors, because different analysts interpret data in different ways. Suppose, based an the earnings consensus of stock analysts, Amy expects a return of 11.61% from the portfolio with the new weights. Does he think that the revised portfolio, based on the changes he recommended, is undervalued, overvalued, or fairly valued? Undervalued Analysts' estimates on expected returns from equity investments are based on several factors. These estimations also often inciude subjective and judgmental factors, because different analysts interpret data in different ways. Suppose, based on the earnings consensus of stock analysts, Amy expects a return of 11.61% from the portfolio with the new weights. Does he think that the revised portfolio, based on the changes he recommended, is undervalued, overvalued, or fairly valued? Undervalued Overvalued Fairly valued Suppose instead of replacing Atteric Inci's stock with Transfer Fuels Co.'s stock, Amy considers replacing Atteric Inc.'s stock with the equal dollar allocation to shares of Company X's stock that has a higher beta than Atteric Inc.. If everything eise remains constant, the portfolio's beta would , and the required return from the portfolio would