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The standard deviation of the market index portfolio is 10%. Stock A has a beta of 2 and a residual standard deviation of 20%. A)

The standard deviation of the market index portfolio is 10%. Stock A has a beta of 2 and a residual standard deviation of 20%.

A) calculate the total variance for an increase of .10 in its beta.

B) calculate the total variance for an increase of 1% in its residual standard deviation.

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