Brandon is an analyst at a wealth management firm. One of his dients holds a $7.500 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: Beta Investment Allocation 35% Standard Deviation 53.0096 0.750 Stock Atteric Inc. (AD) Arthur Trust Inc. (AT) Li Corp. (LC) Transfer Fuels Co. (TF) 20% 1.500 57.00% 15% 1.100 60.0096 304 0.500 64.00% Brandon calculated the portfolios beta as 0.878 and the portfolio's required return as 8.82909 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 Fucs Co. The risk-free rate is 4%, and the market risk premium is 5.50%. According to Brandon'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.) O 0.6002 percentage points O 0.3775 percentage points O 0.5566 percentage points 0.4840 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 6.859 from the portfolio with the new weights. Does the think that the required return as compared to expected returns is undervalued, overvalued, or fairly valued O Fairly valued Overvalued Undervalued Suppose Instead of replacing Atteric Inc.'s stock with Transfer Fuel Cols stock, Brandon considers replacing Atteric inc's stuck with the equal dollar allocation to shares of Company X's stock that has a higher beta than Atteric Inc. If everything else remains constant the required return from the portfolio would Grade It Now Save & Continue Continue without saving