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The standard deviation of the market - index portfolio is 3 0 % . Stock A has a beta of 1 . 5 0 and

The standard deviation of the market-index portfolio is 30%. Stock A has a beta of 1.50 and a residual standard deviation of 40%.
Required:
a. Calculate the total variance for an increase of 0.10 in its beta. (Do not round intermediate calculations.)
b. Calculate the total variance for an increase of 3 percentage points in its residual standard deviation. (Do not round intermediate
calculations.)
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