Question: hello, can someone please help me Brandon is an analyst at a wealth management firm, One of his clients holds a $7,500 portfolio that consists

hello, can someone please help me  hello, can someone please help me Brandon is an analyst at
a wealth management firm, One of his clients holds a $7,500 portfolio

Brandon is an analyst at a wealth management firm, One of his clients holds a $7,500 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: Brandon calculated the portfolio's beta as 0.838 and the portfolio's required retum as 8.6090%. Branden thinks it wit be a good lefea to reatocate the funds in hits ctient's portfotio. He recommends replacing Atteric tncis shares with the same amount in additional shares of Transfer Fuels Ca. The risk-free rate is 4%, and the market risk premium is 5.50%. Accoraing to Brandon's recormendation, asfuming that the market is in equalibrim, how much will the portfolio's required return change? (Note: Do not round your intermediate calculations.) 0.9994 percentage points 1.0776 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 6.24% from the portfolio with the new weights. Does he think that the required return as compared to expected retums is undervalued, overvalued, or fairly valued? Overvalued Fairly yalued Undervalued Suppose instead of replocing Alteric inc,'s stock with Transfer Fuels Co.'s stock, Brandon considers replacing Atteric Inc.'s stock with the equal dollar altacation to shares of Company Xs stock that has a higher beta than Atteric Inc. If everything etse remains constant, the portfolio's beta would

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