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The standard deviation of the market-index portfolio is 30%. Stock A has a beta of 1.50 and a residual standard deviation of 40%. Required: a.
The standard deviation of the market-index portfolio is 30%. Stock A has a beta of 1.50 and a residual standard deviation of 40%. Required: a. Calculate the total variance for an increase of 0.10 in its beta. (Do not round intermediate calculations.) Total variance b. Calculate the total variance for an increase of 0.03 percentage points in its residual standard deviation. (Do not round intermediate calculations.)
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