. Portfolio beta and welgnts is an analyst at a wealth management firm. One of his clients holds a $5,000 portfolio that consists of four tocks. The investment allocation in the portfolio along with the pntribution of risk from each stock is given in the ollowing table: randon Investment Allocation 35% 20% 15% 30% Beta 0.600 1.600 1.100 0.500 Standard Deviation 23.00% 27.00% 30.00% 34.00% Stock Atteric Inc. (AI) Arthur Trust Inc. (AT) Lobster Supply Corp. (LSC) Baque Co. (BC) Brandon calculated the portfolio's beta as 0.845 and the portfolio's expected return as 8.65%. Brandon thinks itwill 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 4%, and the market risk premium is 5.50%. According to Brandon's recommendation, assuming that the market is in equilibrium, how much will the portfolio's required return change? O 0.24 percentage points O 0.19 percentage points O 0.15 percentage points 0.22 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 6.96% from the portfolio with the new weights. Does he think that the revised portfolio, based on the changes he undervalued, overvalued, or fairly valued? O Overvalued O Fairly valued O Undervalued