Kenji is an analyst at a wealth management firmOne of 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:

Kenji 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: Stock Beta Investment Allocation 35% Atteric Inc 0.750 Standard Deviation 0.53% 0,57% Arthur Inc 2094 1.400 Corp. 15% 1.300 0.6094 Baque Co. 30% 0.500 0.649 Keni calculated the portfolio's beta as 0.888 and the portfolio's expected return as 12.66% keni 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 Baque Co. The risk-free rate is 6.00%, and the market risk premium is 7.50%. According to Kenji's recommendation, assuming that the market is in equilibrium, how much will the portfolio's required return change? 0.519 0.82% O 0.66% O 0.76% 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 eamings consensus of stock analysts, Kenji expects a return of 11.99% 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 Fairly valued Overvalued 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, Kenji expects a return of 11.99% 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 Fairly valued Overvalued Suppose instead of replacing Atteric Inc.'s stock with Baque Co.'s stock, Kenji considers replacing Atteric Inc's stock with the equal dollar allocation to shares of Company's stock that has a higher beta than Atterle Inc. If everything else remains constant, the portfolios beta would and the required return from the portfolio would