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Problem 6-5 (Algo) The standard deviation of the market-index portfolio is 50%. Stock A has a beta of 1.60 and a residual standard deviation of

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Problem 6-5 (Algo) The standard deviation of the market-index portfolio is 50%. Stock A has a beta of 1.60 and a residual standard deviation of 25%. Required: a. Calculate the total variance for an increase of 0.20 in its beta. (Do not round intermediate calculations.) Answer is complete and correct. Total variance 0.8725 b. Calculate the total variance for an increase of 24.52% in its residual standard deviation. (Do not round intermediate calculations.) Total variance

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