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The standard deviation of the market - index portfollo is 4 5 % . Stock A has a beta of 1 . 2 0 and

The standard deviation of the market-index portfollo is 45%. Stock A has a beta of 1.20 and a residual standard deviation of 55%.
Required:
a. Calculate the total varlance for an increase of 0.20 in its beta.
Note: Do not round Intermedlate calculations.
Answer is complete and correct.
0.6994
b. Calculate the total varlance for an increase of 54.36 percentage points in its residual standard deviation.
Note: Do not round Intermedlate calculations.
Answer is complete but not entirely correct.
Total variance
1.3900
Only answer part B
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