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The standard deviation of the market-index portfolio is 20%. Stock A has a beta of 1.5 and a residual standard deviation of 30%. a.Calculate the

The standard deviation of the market-index portfolio is 20%. Stock A has a beta of 1.5 and a residual standard deviation of 30%.

a.Calculate the total variance for an increase of .15 in its beta.(Do not round intermediate calculations. Round your answer to 4 decimal places.)

Total variance

b.Calculate the total variance for an increase of 3% in its residual standard deviation.(Do not round intermediate calculations. Round your answer to 4 decimal places.)

Total variance

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