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 portfollo along with the contribution of risk from each stock is given in the following table: Brandon calculated the porttolio'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 clent's portfolio. He recommends replacing Atteric incis shares with the same amount in additional thares of Transler Fueis 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 equilbelum, how much will the portfolio's required return change? (Note: Do not round your intermediate calculations.) 1.0776 percentage points 0. 0690 percentege points 0.677e percemage points 0.9994 percentoge points Aralyets' estimstes on expected returns from equity investments are based on several fectors. These estimations also often include subjective and Wydgmentai factors, becaise different analysts interpeet data in different ways. 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 datis in different ways. Suppose, based on the eamings 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? Wndervalued Overvalued Falriy valued Suppase instead of replscing Acteric Incis stock with Transfer Fueis Co.'s stock, Grandon conslders replacing Asteric Inci's stock with the equal doilar alipcotion 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