Charles is an analyst at a wealth management firm. One of his clients holds a $10,000 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: Stock Investment Allocation Beta Standard Deviation Atteric Inc. 35% 0.900 0.38% Arthur Inc. 20% 1.400 0.42% 15% 1.200 0.45% Li Corp. Transfer Fuels Co. 30% 0.300 0.49% Charles calculated the portfolio's beta as 0.865 and the portfolio's expected return as 12.49%. Charles 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 Fuels Co. The risk-free rate is 6.00%, and the market risk premium is 7.50%. According to Charles's recommendation, assuming that the market is in equilibrium, how much will the portfolio's required return change? O 1.96% O 1.23% O 1.82% O 1.58% 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, Charles expects a return of 10.90% from the portfolio with the new weights. Does he think that the revised portfolio, based on the changes he recommended, is undervalued, overvalued, or fairly valued? O Fairly valued Overvalued O Undervalued Suppose instead of replacing Atteric Inc.'s stock with Transfer Fuels Co.'s stock, Charles considers replacing Atteric Inc.'s stock 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 decrease Suppose instea increase g Atteric Inc.'s stock with Transfer Fuels Co.'s stock, Charles considers replacing Atteric Inc.'s stock with the equal dollar pany X's stock that has a higher beta than Atteric Inc.. If everything else remains constant, the required return from the allocation to sh portfolio would