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din WOTE CONCOUVOITOTISK TUN OUTSOCKIS yive U TUWI Love. Stock Beta Investment Allocation 35% Atteric Inc. (AI) 0.750 Standard Deviation 38.00% 42.00% Arthur Trust Inc.

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din WOTE CONCOUVOITOTISK TUN OUTSOCKIS yive U TUWI Love. Stock Beta Investment Allocation 35% Atteric Inc. (AI) 0.750 Standard Deviation 38.00% 42.00% Arthur Trust Inc. (AT) 20% 1.500 15% 1.100 45.00% Corp. (LC) Baque Co. (BC) 30% 0.300 49.00% Brandon calculated the portfolio's beta as 0.818 and the portfolio's required return as 8.4990%. Brandon thinks it will be a good idea to reallocate the funds in his client's portfolio. He recommends replacing Atterie 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 calculations.) 0.8690 percentage points 1.0776 percentage points O 0.6778 percentage points 0.9994 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

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