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need help with this. no work shown is needed. ty. Manuel is an analyst at a wealth management firm. One of his clients holds a

need help with this. no work shown is needed. ty.

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Manuel is an analyst at a wealth management firm. One of his clients holds a $5,000 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 Investment Allocation Beta Standard Deviation Atteric Inc. 35% 0.750 0.38% Arthur Inc. 20% 1.600 0.42% Lobster Supply Corp. 15% 1.100 0.45% Baque Co. 30% 0.400 0.49% Manuel calculated the portfolio's beta as 0.868 and the portfolio's expected return as 12.51%. Manuel 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 Manuel's recommendation, assuming that the market is in equilibrium, how much will the portfolio's required return change? According to Manuel's recommendation, assuming that the market is in equilibrium, how much will the portfolio's required return change? O 1.06% O 0.72% O 0.92% O 1.14% 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, Manuel expects a return of 11.58% 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? Microsoft One O Undervalued O Overvalued O Fairly valued increase tead of replacing Atteric Inc.'s stock with Baque Co.'s stock, Manuel considers replacing Atteric Inc.'s stock with the equal dollar allocation decrease Company X's stock that has a higher beta than Atteric Inc.. If everything else remains constant, the portfolio's beta would and the required return from the portfolio would decrease increase Suppose instead of replacing Atteric Inc.'s stock with Baque Co.'s s to shares of Company X's stock that has a higher beta than Atteric and the required return from the portfolio would I considers replacing Atteric Inc.'s stock with the equal dollar allocation rything else remains constant, the portfolio's beta would

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