Brandon is an analyst at a wealth management firm. One of his clients 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: Investment Allocation 35% Beta Standard Deviation 0.750 52.00% Stock Atteric Inc. (AI) Arthur Trust Inc. (AD u Corp. (LC) Transfer Fuels Co. (TE) 20% 1.500 57.00% 1.100 60.00% 15% 30% 0.500 64.00% Brandon calculated the portfolio's beta as 0.87 and the portfolio's required return as 8.8290% Brandon thinks it will be a good idea to reallocate the funds in his client's portfolio. He recommends replacing Atteric Inc. 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's recommendation, assuming that the market is in equilibrium, how much will the portfolio required return change? (Note: 0 not round vou letermediate calculations.) 0.0002 percentage points 0:4040 percentage points 0.35 0.3775 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 6.85% 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? overvalued Fairly valued Undervalued Suppose instead of replacing Attenc inc's stock with Transfer Fuels cosstock Brandon considers replacing Attere in stock with the goal dollar allocation to shares of Company's stock that has a higher beta than Atteric int I everything else remains constant the required return from the portfolio would