I've attached photos of the questions i need help with, thank you! HB Harvard Business Publishinc B Chapter 7- MBAD-503-01 -b My Questions | bartlebyMindTap Cengage Lea XHBXKAhttps://ng.cengage.com/static/nb/ui/evo/index.html?elSBN=9781337900010&id- 5432476578snapshotld=1286803&CENGAGE MINDTAPQ Search this courseXCh 08: Assignment - Risk and Rates of Return6. Portfolio beta and weightsAaమాBrandon is an analyst at a wealth management firm. One of his clients holds a $7,500 portfolio that consists of fourstocks. The investment allocation in the portfolio along with the contribution of risk from each stock is given in thefollowing table:A-ZStandardInvestmentAllocationBetaDeviationStockAtteric Inc. (AI)38.00%35%0.900OfficeArthur Trust Inc. (AT)20%1.40042.00%Li Corp. (LC)1.20015%45.00%Transfer Fuels Co. (TF)0.40030%49.00%Brandon calculated the portfolio's beta as 0.895 and the portfolio's expected return as 8.92%Brandon thinks it will be a good idea to reallocate the funds in his client's portfolio. He recommends replacing AttericInc.'s shares with the same amount in additional shares of Transfer Fuels Co. The risk-free rate is 4%, and themarket risk premium is 5.50%According to Brandon's recommendation, assuming that the market is in equilibrium, how much will the portfolio'srequired return change?O 1.10 percentage pointsO 0.75 percentage pointsO 0.96 percentage pointsO 1.19 percentage pointsAnalysts' estimates on expected returns from equity investments are based on several factors. These estimationsalso 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 6.46% from the portfolio+ HB Harvard Business Publishinc B Chapter 7- MBAD-503-01 -b My Questions | bartlebyMindTap Cengage Lea XHBXKAhttps://ng.cengage.com/static/nb/ui/evo/index.html?elSBN=9781337900010&id- 5432476578snapshotld=1286803&CENGAGE MINDTAPQ Search this courseXCh 08: Assignment - Risk and Rates of ReturnAccording to Brandon's recommendation, assuming that the market is in equilibrium, how much will the portfolio'sమాrequired return change?O 1.10 percentage pointsO 0.75 percentage pointsO 0.96 percentage pointsO 1.19 percentage pointsA-ZOfficeAnalysts' estimates on expected returns from equity investments are based on several factors. These estimationsalso 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 6.46% from the portfoliowith the new weights. Does he think that the revised portfolio, based on the changes he recommended, isundervalued, overvalued, or fairly valued?O Fairly valuedO OvervaluedO UndervaluedSuppose instead of replacing Atteric Inc.'s stock with Transfer Fuels Co.'s stock, Brandon considers replacing AttericInc.'s stock with the equal dollar allocation to shares of Company X's stock that has a higher beta than Atteric Inc. Ifeverything else remains constant,, the portfolio's risk wouldScreenshot savedThe screenshot was added to yourFlash Player WIN 32,0,0,255Q3 3.34.1 2004-2016 Aplia. All rights reserved.O 2013 Cengage Learning except as noted. All rights reserved.Grade It NowSave & ContinueOneDrive.One DriveContinue without saving+

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First Question:The portfolio's required return E(R) is as given by the expression on the white…