The standard deviation of the market-index portfolio is 30%. Stock A has a beta of 1.50 and a residual standard deviation of 40%. |
a-1. |
Calculate the total variance of stock A if its beta is increased by 0.10? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 4 decimal places.) |
Total variance | .3904 |
a-2. |
Calculate the total variance of stock A if its residual standard deviation is increased by 3.35% ? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 4 decimal places.) |
Total variance |
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