Please I need help with this exercise. Thank you in advance!!

12. Portfolio beta and weights Hubert 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% 0.600 0.38% 20% 1.600 0.42% Arthur Trust Inc(AT) Lobster Supply Corp. (LSC) Baque Co. (BC) 15% 1.200 0.45% 30% 0.500 0.49% Hubert calculated the portfolio's beta as 0.860 and the portfolio's expected return as 12.45% Hubert 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 Baque Co. The risk-free rate is 6.00%, and the market risk premium is 7.50% According to Hubert's recommendation, assuming that the market is in equilibrium, the portfolio's required return will change by 0.22% 0.17% Eive and Analysts' estimates on expected returns from equity investments are based on several factors. These estimations also often incl judgmental factors, because different analysts interpret data in different ways. 0.25% 0.27% Suppose, based on the earnings consensus of stock analysts, Hubert expects a return of 12.22% from the portfolio with the new think that the revised portfolio, based on the changes he recommended, is undervalued, overvalued, or fairly valued? he 0.22% Fairly valued Lobster Supply Corp. (LSC) Baque Co. (BC) 15% 1.200 0.45% 3096 0.500 0.49% Hubert calculated the portfolio's beta as 0.860 and the portfolio's expected return as 1245% Hubert 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 Baque Co. The risk-free rate is 6.00%, and the market risk premium is 7.50% According to Hubert's recommendation, assuming that the market is in equilibrium, the portfolio's required return will change by 0.22% 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, Hubert expects a return of 12.22% from the portfolio with the new weights. Does he think that the revised portfolio, based on the changes he recommended, is undervalued, overvalued, or fairly valued? Fairly valued Overvalued Undervalued Suppose instead of replacing Atteric Inc.'s stock with Baque Co.'s stock, Hubert considers replacing Atteric Inc.'s stock with the equal dollar allocation 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 return from the portfolio would Grade It Now Save & Continue