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Business, 17.03.2020 05:20 dylannhandy

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%. a. Calculate the total variance for an increase of .15 in its beta. (Do not round intermediate calculations. Round your answer to 4 decimal places.) Total variance .1989 b. Calculate the total variance for an increase of 3% in its residual standard deviation. (Do not round intermediate calculations. Round your answer to 4 decimal places.) Total variance .0098

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