Beta Investment Allocation 35% Standard Deviation 38.00% 0.750 1.600 Stock Atteric Inc (A) Arthur Thust Inc. (AT) Corp. (LC) Transfer Fuel Co. (TA 20N 15% 30% 42.00% 45.00 1.100 0.300 49.00 Brandon calculated the portfolio's beta as 0.838 and the portfollo's required return as 8.6090%. Brandon thinks it will be a good idea to reallocate the funds in his client's portfolio. He recommends replacing Atteric Inc.'s 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%. According to Brandon te recommendation, assuming that the market is in equilibrium, how much will the portfolio's required retum change? (Note: Do not round your intermediate calculations.) O 1.0776 percentage points O 0.9994 percentage points O 0.8690 percentage points O 0,6778 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, Brandon expects a return of 6.24% 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 O Fairly valued Suppose instead of replacing Atterie Inc.'s stock with Transfer Fuels Co.'s stock, Brandon considers replacing Atteric inc's stock with the equal dollar allocation to shares of Company X's stock that has a higher beta than Atterie Inc. If everything else remains constant, the portfolios beta would