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Lorenzo is an analyst at a wealth management firm. One of his clients holds a 57,500 portfolis that consists of four stecks. The imvestment alfocation

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Lorenzo is an analyst at a wealth management firm. One of his clients holds a 57,500 portfolis that consists of four stecks. The imvestment alfocation In the portfolio along with the contribution of risk from each stock is given in the following table: Lorerie calculated the portfolio's beta as 0.798 and the portfolio's expected return as 11.9295 According to torento's recommendation, assuming that the market is in equathtium, bow mich will the portfollo's required return change? 1.19% 1.3794 0.93% lucjmerital factora, becaurse different analyits interset data in different ways. Undervalued Falify valued D.ervalued Suppose, based on the earmings consensus of stock aratysts, Lorenzo, exgects a retara af 10,79 s. ficm the fortfalio with the new welghts. Does he Undervakued Fairify valued overvalues , and the required fefint from the nestolie would

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