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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. 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. Calculate the total variance for an increase of 0.20 in its beta. (Do not round intermediate calculations. Round your answer to the nearest whole number.)

Total variance %-Squared

b. Calculate the total variance for an increase of 8.86% in its residual standard deviation. (Do not round intermediate calculations. Round your answer to the nearest whole number.)

Total variance %-Squared

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