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Gregory calculated the portfolio's beta as 0.860 and the portfolio's expected return as 8.73%. Gregory thinks it will be a good idea to reallocated the

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Gregory calculated the portfolio's beta as 0.860 and the portfolio's expected return as 8.73%. Gregory thinks it will be a good idea to reallocated the funds in his client's portfolio. recommends replacing Att Ins's shares with the same amount in additional shares of Baque Co. The risk-free rate is 4%, and the market ri 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? 0.24 percentage points 0.19 percentage points 0.15 percentage points 0.22 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 earnings consensus of stock analysts, Gregory expects a return of 10.04% from the portfolio new weights. Does he think that the revised portfolio, based on the changes he recommended, is undervalued, overvalued, or fairly valued? Undervalued overvalued Fairly valued

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