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

The standard deviation of the market-index portfolio is 50%. Stock A has a beta of 1.30 and a residual standard deviation of 60%.
Required:
a. Calculate the total variance for an increase of 0.20 in its beta. (Do not round intermediate calculations.)
Total variance
b. Calculate the total variance for an increase of 59 percentage points in its residual standard deviation. (Do not round intermediate calculations.)
Total variance
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