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Please help. Thanks Brandon is an analyst at a wealth management firm. One of his clients holds a $10,000 portfolio that consists of four stocks.

Please help. Thanks

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Brandon is an analyst at a wealth management firm. One of his clients holds a $10,000 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 Investment Allocation 35% 20% 15% 30% Standard Deviation 38.00% 42.00% 45.00% 49.00% Stock Atteric Inc. (AI) Arthur Trust Inc. (AT) Li Corp. (LC) Baque Co. (BC) Beta 0.750 1.600 1.200 0.500 Brandon calculated the portfolio's beta as 0.913 and the portfolio's expected return as 12.85% 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 Baque 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? O 0.82 percentage points O 0.66 percentage points O 0.52 percentage points O 0.76 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 13.69% 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 Overvalued

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