Van 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. (AI) 35% 0.750 0.38% 20% 1.500 0.42% Arthur Trust Inc(AT) 15% 1.300 0.45% Lobster Supply Corp. (LSC) Transfer Fuels Co. (TF) 30% 0.500 0.49% Van calculated the portfolio's beta as 0.908 and the portfolio's expected return as 10.90%. Van 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 Transfer Fuels Co. The risk-free rate is 5.00%, and the market risk premium is 6.50%. According to Van's recommendation, assuming that the market is in equilibrium, the portfolio's required return will change by 0.71% jective and Analysts' estimates on expected returns from equity investments are based on several factors. These estimations also often in judgmental factors, because different analysts interpret data in different ways. 0.66% 0.57% Does he think Suppose, based on the earnings consensus of stock analysts, Van expects a return of 10.32% from the portfolio with the new that the revised portfolio, based on the changes he recommended, is undervalued, overvalued, or fairly valued? 0.44%