The standard deviation of the market$-$index portfollo is $45\%.$ Stock A has a beta of $1\mathrm{.}20$ and a residual standard deviation of $55\%.$

Required:

a$.$ Calculate the total varlance for an increase of $0\mathrm{.}20$ in its beta.

Note: Do not round Intermedlate calculations.

Answer is complete and correct.

$0\mathrm{.}6994$

b$.$ Calculate the total varlance for an increase of $54\mathrm{.}36$ percentage points in its residual standard deviation.

Note: Do not round Intermedlate calculations.

Answer is complete but not entirely correct.

Total variance

$1\mathrm{.}3900$

Only answer part B