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The standard deviation of the market-index portfolio is 40%. Stock A has a beta of 1.75 and a residual standard deviation of 50%. a. Calculate

The standard deviation of the market-index portfolio is 40%. Stock A has a beta of 1.75 and a residual standard deviation of 50%.

a.Calculate the total variance for an increase of 0.10 in its beta.(Do not round intermediate calculations. Round your answer to the 4 decimal places.)

Total variance

b.Calculate the total variance for an increase of 5.46% in its residual standard deviation.(Do not round intermediate calculations. Round your answer to the 4 decimal places.)

Total variance

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