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The standard deviation of the market - index portfolio is 2 0 % . Stock A has a beta of 1 . 7 5 and
The standard deviation of the marketindex portfolio is Stock A has a beta of and a residual standard deviation of
Required:
a Calculate the total variance for an increase of in its beta. Do not round intermediate calculations.
Total variance
b Calculate the total variance for an increase of percentage points in its residual standard deviation. Do not round intermediate calculations.
Total variance
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