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The standard deviation of the market-index portfolio is 45%. Stock A has a beta of 1.20 and a residual standard deviation of 55%. a-1. Calculate

The standard deviation of the market-index portfolio is 45%. Stock A has a beta of 1.20 and a residual standard deviation of 55%.

a-1.Calculate the total variance of stock A if its beta is increased by 0.20?(Do not round intermediate calculations. Enter your answer as a decimal rounded to 4 decimal places.)

a-2.Calculate the total variance of stock A if its residual standard deviation is increased by8.86% ?(Do not round intermediate calculations. Enter your answer as a decimal rounded to 4 decimal places.)

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