Frahdon is an andyst at a wealth management firm. One of his clients holds a 55,000 portfelio that consists of four stocks, The itvestrnere aliocation in the portfelio along with the contribution of risk from each stock is given in the following table: Erandon calculated the portfoliaks beta ats 0.815 and the portfolioks requlred return as 8.4990%. Almandon thinks it will be a good idea to reallocate the funds in his dient's portfolio. He recocnmends replacing Atteric Incis shares with the same ampunt in additional shanes of Bafue Co, The riekc-free rate is 45 , and the maricet risic premium is 5.50 i. not round your intermediage calculationsid Q.9994 percentage points 1. 97ib percentage points 0. 6690 percentage points 0.67ris purcentage poinks Analysts" estimates on expected returns from equity imvestments 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, Brandon expects a retum of 6.13% from the portfolio with the new weights. Does he think that the required return as compared to expected returns is undervalued, overvolued, or fairly valued? Undervalued Fairfy valucd Overvalued Suppose instead of replocing Atteric Inci's stock with Baque Coi's stock, Brandon 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 portfolio's beta would