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Problem 6 - 5 ( Algo ) The standard deviation of the market - index portfolio is 3 5 % . Stock A has a
Problem Algo
The standard deviation of the marketindex portfolio is Stock A has a beta of and a residual standard deviation of
Required:
a Calculate the total variance for an increase of in its beta. Do not round intermediate calculations.
Total variance
b Calculate the total variance for an increase of percentage points in its residual standard deviation. Do not round intermediate calculations.
Total variance
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