Rafael 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: Stock Investment Allocation 35% Standard Deviation 23.00% 27.00% 20% Beta 0.750 1.600 1.300 0.300 Atteric Inc. (AI) Arthur Trust Inc. (AT) Lobster Supply Corp. (LSC) Baque Co. (BC) 15% 30.00% 3046 34.00% Rafael calculated the portfolio's beta as 0.868 and the portfolio's required return as 8.7740% Rafael thinks it will be a good idea to reallocate the funds in his client's portfolio. He recommends replacing Atteric Inc. shares with the same amount in additional shares of Baque Co. The risk free rate is 4%, and the market risk premium is 5.50% According to Rafael's recommendation, assuming that the market is in equilibrium, how much will the portfolio's required return change? (Note: Do not round your intermediate calculations.) 0.6778 percentage points 1.0776 percentage points 0.8690 percentage points 0.9994 percentage