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Calculate the total variance for an increase

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Reference no: EM132398319

The standard deviation of the market-index portfolio is 50%. Stock A has a beta of 1.60 and a residual standard deviation of 25%.

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.)

b. Calculate the total variance for an increase of 23.22% in its residual standard deviation.

Reference no: EM132398319

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