9. Portolio beta and weights Brandon is an analyst at a wealth management firm. One of his clients holds a $10,000 portfolio that consists of four otoeka. The investment allocation in the portfolio along whth the contribution of risk from each stock is given in the following table: Brandon caiculated the portfolio's beta as 0.840 and the portfolio's required retum as 8.620096 : Brandon thinks it will be a good iofa to reallociate the funds in his client's portolio. He recommends replacing Atteric Incis shares with the same amount in addoonal thares of Baque Co. The riskofree rate is 4%, and the markek riak premium is 5.5094 . According to Brandon's recommendation, assuming that the market is in equilibrium, how migch will the pertfolia) required return change? (Note: Do not roubd your intermediate caiculatians.) 0.2347 percentage paints 0:2214 percentage polnts 0.1925 percentage points 0.1502 percentage points Analysts' estimates on expected returns from equity investments are bssed onieveral 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 9.93 3. from the gortfolid with the new weighti. Does he think that the required retum as compared to expected returns is undervalued, overvalued, or fairly valued? Uadervalued Overvalued fality valued to thares of company x 's btock that has a higher beta than Attenc lnc. If everything else ramalna constant, the porthalla's risk wauld