Rina is an analyst at a wealth management firm. One of her 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:

Stock	Investment Allocation	Beta	Standard Deviation
Atteric Inc. (AI)	35%	0.900	0.23%
Arthur Trust Inc. (AT)	20%	1.500	0.27%
Li Corp. (LC)	15%	1.200	0.30%
Baque Co. (BC)	30%	0.500	0.34%

Rina calculated the portfolios beta as 0.945 and the portfolios expected return as 9.20%.

Rina thinks it will be a good idea to reallocate the funds in her clients portfolio. She recommends replacing Atteric Inc.s shares with the same amount in additional shares of Baque Co. The risk-free rate is 4.00%, and the market risk premium is 5.50%.

According to Rinas recommendation, assuming that the market is in equilibrium, the portfolios required return will change by a) 0.92% b)0.85% c) 0.58% d)0.74%