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The standard deviation of the market-index portfolio is 40%. Stock A has a beta of 1.5 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 1.5 and a residual standard deviation of 50%.

a. Calculate the total variance for an increase of 0.25 in its beta. (Do not round intermediate calculations. Round your answer to the nearest whole number.)

b. Calculate the total variance for an increase of 49.38% in its residual standard deviation. (Do not round intermediate calculations. Round your answer to the nearest whole number.)

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