Question: please answer asap! Wette is an analyst at a wealth manageroent firm. One of her clients holds a $7,500 portfolio that consists of four stocks.

Wette is an analyst at a wealth manageroent firm. One of her 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: Wette calculated the portfolio's beta as 0.868 and the portfolio's expected return as 8.77%. Wette thinks it will be a good idea to reallocate the funds in her client's portfolio. She recommends replacing Atteric Incts 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 Yvette's recommendation, assuming that the market is in equilibrium, how much will the portfolio's required return change? 0.68% 1.08% 1.00% 0.87% 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, Yvette expects a return of 7.89% from the portfolio with the new weights. Dces he think that the revised portfolio, based on the changes he recommended, is undervalued, overvalued, or fairly valued? Undervalued Overvalued Fairly valued Suppose instead of replacing Atteric Inc.'s stock with Baque Co.'s stock, Yvette considers replacing Atteric Inc.'s stock with the equal doliar aliocation to shares of Company X's stock that has a higher beta than Atteric Inc. If everything else remains constant, the portfolio's beta would and the required retum from the portfolio would
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