What would make for a larger increase of the stock variance

Reference no: EM13295818

The standard deviation of the market index portfolio is 20%. Stock A has a beta of 1.5 and a residual standard deviation of 30%.

What would make for a larger increase of the stock's variance: an increase of 1.5 in its beta or an increase of 3% in its residual standard deviation?

Reference no: EM13295818

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