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Gregory is holding a 10,000 dollar portfolio Investment Allocation 35% 20% 15% 30% Standard Deviation 23.00% 27.00% 30.00% 34.00% Stock Atteric Inc. (AI) Arthur Trust

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Gregory is holding a 10,000 dollar portfolio
Investment Allocation 35% 20% 15% 30% Standard Deviation 23.00% 27.00% 30.00% 34.00% Stock Atteric Inc. (AI) Arthur Trust Inc. (AT) Li Corp. (LC) Transfer Fuels Co. (TP) Beta 0.600 1.400 1.200 0.500 Brandon calculated the portfolio's beta as 0.820 and the portfolio's expected return as 12.15%. Brandon thinks it will be a good idea to reallocate the funds in his client's portfolio. He recommends replacing Atteric Inc.'s shares with the same amount in additional shares of Transfer Fuels Co. The risk-free rate is 6%, and the market risk premium is 7.50%. According to Brandon's recommendation, assuming that the market is in equilibrium, how much will the portfolio's required return change? 0.30 percentage points O 0.26 percentage points O 0.32 percentage points O 0.20 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, Brandon expects a return of 13.39% 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? O Fairly valued O Undervalued O Overvalued Suppose instead of replacing Atteric Inc.'s stock with Transfer Fuels Co.'s stock, Brandon considers replaing Inc.'s stock with the equal dollar allocation to shares of Company X's stock that has a higher everything else remains constant, the portfolio's risk would beta than Atteric Inc. If

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