*Please explain your answer clearly. Thank you!

Amy is an analyst at a wealth management firm. One of her 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: Amy calculated the portfolio's beta as 0.875 and the portfolio's expected return as 8.81%. Amy thinks it will be a good idea to reallocate the funds in her client's portfolio. She recommends replacing Atteric Inc.'s shares with the same amount in additional shares of Transfer Fuels Co. The risk-free rate is 4.00%, and the market risk premium is 5.50%. According to Amy's recommendation, assuming that the market is in equilibrium, how much will the portfolio's required return change? 0.24% 0.19% 0.15% 0.22% 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, Amy expects a return of 8.64% from the portfolio with the new heing 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 Transfer Fuels Co.'s stock, Amy considers replacing Atteric Inc.'s stock with the equal dollar allocation to shares of Company X's stock that has a higher beta than Atteric Inc. If everything else remains constant, the required return from the portfolio would