Gregory Bananalacat a watch management firm. One of his clients hands a $10.000 portra that consiste rour Sto. The investment location in the portfolio along with the contribution of risk from each stock is given in the following table: Stock Beta 0.900 Arteric Inc. (AL) Arthur Trust Inc. (AT) Lobster Supply Corp. (LSC) Baque Co. (BC Investment Allocation 35% 20% 15% 304 1.400 1.100 0.300 Standard Deviation 38.00% 42.004 45.00% 49.00% Gregory calculated the portfolio's beta as 0.850 and the portfolio's expected return as 8.68% Gregory thinks it will be a good idea to reallocate the funds in his dient's portfolio. He recommends replacing Atteric 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 Gregory's recommendation, assuming that the market is in equilibrium, how much will the portfolio's required return change? O 1.33 percentage points O 0.90 percentage points O 1.16 percentage points O 1.44 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. Suppose, based on the caminos consensus of stock analysts, Gregory expects a return / 9.02% 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? Undervalued O Fairly valued Overvalued Suppose instead of replacing Atteric Inc.'s stock with Baque Co.'s stock, Gregory considers replacing Atteric Inc's stock with the equal dollar allocation to shares of Company's stock that has a higher beta than Atteric Inc. everything else remains constant, the portfolio's beta would