Calculate the total variance, Finance Basics

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Calculate the total variance

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) Calculate the total variance for an increase of .15 in its beta?

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

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Finance Basics: Calculate the total variance

Reference No:- TGS046926

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Request for Solution File

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Finance Basics: Calculate the total variance

Reference No:- TGS046926

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Comparison of risk and return

Q : What is the total paid-in capital of alpha corporation

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Calculate the total variance

Reference No:- TGS046926

Recent Questions Asked Finance Basics

Q : Comparison of risk and return

Q : What is the total paid-in capital of alpha corporation

Q : Circumstances choose not to participate in labor force

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Q : Explain why was one policy successful but not the other

Q : Compute the balance in retained earnings

Q : Pooling-of-losses arrangement

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