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The standard deviation of the market index portfolio is 20%. Stock A has a beta of 1.5 and a residual standard deviation of 40%.

Requirement 1

(a) find out the total variance for an increase of .15 in its beta?

(b) find out the total variance for an increase of 5% in its residual standard deviation?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M946926

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