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The standard deviation of the market-index portfolio is 20%. Stock A has a beta of 2.00 and a residual standard deviation of 30%. Calculate the

The standard deviation of the market-index portfolio is 20%. Stock A has a beta of 2.00 and a residual standard deviation of 30%. Calculate the total variance for an increase of 0.10 in its beta.

	A.	Total variance will increase from 2,500 to 2,664.
	B.	Total variance will increase from 2,500 to 2,774.
	C.	Total variance will increase from 2,600 to 2,664.
	D.	Total variance will increase from 2,600 to 2,774.

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