The standard deviation of the market$-$index portfolio is $20\%.$ Stock A

has a beta of $1\mathrm{.}5$ and a residual standard deviation of $30\%.$

a$.$ Calculate the total variance for an increase of $15$ in its beta. $($Do not

round intermediate calculations. Round your answer to $4$ decimal

places.$)$

Total variance

b$.$ Calculate the total variance for an increase of $3\%$ in its residual

standard deviation. $($Do not round intermediate calculations. Round

your answer to $4$ decimal places.$)$

Total variance