Gregory is an analyst at a wealth management firm. One of his clients holds a $7,500 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: Gregory calculated the portfollo's beta as 0.910 and the portfolio's required return as 12.8250%. Gregory thinks it witl be a good idea to reatlocate the funds in his ctent's portfolio. He recommends replacing Atteric incis inares with the same amount in additional shares of Transfer Fuels Co. The risk-free rate is 6%, and the market risk premium is 7.5045 . According to Gregory'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.) 1.3020 percentage points 1.0500 percentage points 0.8190 percentage points 1.2075 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 13.28% from the portfolio with the new weights. Does he think that the required return as compared to expected returns is undervalued, overvalued, or fairly valued? Overvalued Undervalued Fairly valued Suppose instead of replacing Atteric inc's stock with Transfer Fuels Co.s stock, Gregory considers replacing Altenc inci stock with the equal doliar allocation to shares of Company Xs stock that has a higher beta than Atteric Inc. If everything eise remains constant, the required return from the portfolio would