Question
The standard deviation of the market-index portfolio is 50%. Stock A has a beta of 1.30 and a residual standard deviation of 60%. a. Calculate
The standard deviation of the market-index portfolio is 50%. Stock A has a beta of 1.30 and a residual standard deviation of 60%.
a. Calculate the total variance for an increase of 0.20 in its beta. (Do not round intermediate calculations. Round your answer to 4 decimal places.)
Total variance
b. Calculate the total variance for an increase of 10.71% in its residual standard deviation. (Do not round intermediate calculations. Round your answer to 4 decimal places.)
Total variance
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Health Care Finance Basic Tools For Nonfinancial Managers
Authors: Judith J. Baker, R.W. Baker, Neil R. Dworkin
5th Edition
1284118215, 978-1284118216
