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he standard deviation of the market-index portfolio is 35%. Stock A has a beta of 1.40 and a residual standard deviation of 45%. a. Calculate the total variance for an increase of 0.20 in its beta. (Do
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he standard deviation of the market-index portfolio is 35%. Stock A has a beta of 1.40 and a residual standard deviation of 45%. 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.)

User Trimack
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Answer:

=(45%)^2+(1.6*35%)^2=0.5161

This is the required total variance

User LostJon
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