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The standard deviation of the market-index portfollo is 15%. Stock A has a beta of 2.00 and a residual standard deviation of 25%. Required: a.

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The standard deviation of the market-index portfollo is 15%. Stock A has a beta of 2.00 and a residual standard deviation of 25%. Required: a. Calculate the total variance for an increase of 0.20 in its beta. (Do not round intermediate calculations.) b. Caicuiate the total variance for an increase of 0.04 percentage points in its residual standard deviation. (Do not round intermediate calculations.)

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