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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%. Required:

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%. Required: a. Calculate the total variance for an increase of 0.20 in its beta. (Do not round intermediate calculations.) Total variance b. Calculate the total variance for an increase of (expression error) percentage points in its residual standard deviation. (Do not round intermediate calculations.) Total variance

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