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Problem 6-5 (Algo) The standard deviation of the market-index portfolio is 30%. Stock A has a beta.of 2.00 and a residual standard deviation of 50%.

Problem 6-5 (Algo) The standard deviation of the market-index portfolio is 30%. Stock A has a beta.of 2.00 and a residual standard deviation of 50%. Required: a. Calculate the total variance for an increase of 0.20 in its beta. (Do not round intermediate calculations.) Total variance image text in transcribed
Problem 6-5 (Algo) The standard deviation of the market-index portfolio is 30%. Stock A has a beta, of 2.00 and a residual standard deviation of 50% Required: a. Calculate the total variance for an increase of 0.20 in its beto. (Do not round Intermediate calculations.) Total variance 6.858.0000 ces b. Calculate the total variance for an increase of 49.43% in its residual standard deviation. (Do not round Intermediate calculations.) Total variance 0,056.0000

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