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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

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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 portfolio along with the contribution of risk from each stock is given in the following table: Standard Deviation 38.00% Stock Atteric Inc. (A) Arthur Trust Inc. (AT) u Corp. (LC) Transfer Fuels Co (TE) Investment Allocation 3596 209 159 3096 Beta 0.900 1.500 1.300 0.400 42.0096 45.00 49.009 Brandon calculated the portfolio's beta as 0.930 and the portfolio's required return as 9.11 50 Brandon thinks it will be a good idea to reallocate the funds in his client's portfolio. He recommends replacing Attend 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 5.50 According to Brandon's recommendation, assuming that the market is in equitum, how much will the portfolio's required return change (Note: Do not round your intermediate calculations.) 1.1955 percentage points 0.7500 percentage points 1.1069 percentage points 0.9625 percentage points Mates on expected returns from equity investments Me based on several factors. These estimations often hade subjective and Judgment actors, be different analysts interpret data in different ways

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