Brandon is an analyst at a wealth management firm. One of his clients holds a $5,000 portfolio that consists of four stocks. The investment allocation in the portfollo along with the contribution of risk from each stock is given in the following table: Brandon calculated the portfolio's beta as 0.818 and the portfolio's required return as 8.4990%, Brendon thinks it will be a good idea to reallocate the funds in his client's portfolio. He recommends replacing Acteric Inc.'s shares with the same amount in additional shares of Baque 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 calcutations.) 0.9994 percentage points 0,6778 percentage points 1,0776 percentage points 0.8690 percentage points Analysts' estimates on expected returns from equity ifvestments are based on several factors. These estimations also often include subjective and fudgmental factors, because different analysts interpret data in different ways. Suppose, based on the eamings consensus of stock analysts, Brandon expects a return of 6.13% 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? Fairly volued Overvalued Undervalued Suppose instead of replocing Atteric Incis stock with Baque Co's stock, Arandon considers replacing Atteric Incis stock with the equal doliar asocation. to shares of Company X 's stock that has a higher beta than Atteric inc. If everything else remains constant, the portfolio's beta would