What would make for a larger increase in the stock variance, Accounting Basics

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What would make for a larger increase in the stock variance

The standard deviation of the market index portfolio is 20%. Stock A has a beta 1.5 and residual standard deviation of 30%

A. What would make for a larger increase in the stock variance an increase of 1.5 in its beta or an increase of 3% in its residual standard deviation?

B. An inventor who currently hold the market index portfolio decides to reduce the portfolio allocation to the market index to 90% and to invest 10% in stock A. which of the changes in a, will have greater impact on the portfolio standard deviation?

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Accounting Basics: What would make for a larger increase in the stock variance

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Accounting Basics: What would make for a larger increase in the stock variance

Reference No:- TGS0707272

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Recent Questions Asked Accounting Basics

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: What would make for a larger increase in the stock variance

Reference No:- TGS0707272

Recent Questions Asked Accounting Basics

Q : How to compute the accounts receivable turnover

Q : What is the amount of harwichport companys invntory

Q : Possible to produce output efficiently

Q : What is th eproduct margin for product

Q : What would make for a larger increase in the stock variance

Q : Amount of discount or premium

Q : What expected return and standard deviation does yours graph

Q : What is the impact the market value the most

Q : Batteries withdrawn from the storeroom

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