Answered

The standard deviation of the market-index portfolio is 20%. Stock A has a beta of 2.00 and a residual standard deviation of 30%. a. Calculate the total variance for an increase of 0.10 in its beta. (Do not round intermediate calculations. Round your answer to the nearest whole number.) b. Calculate the total variance for an increase of 2.62% in its residual standard deviation. (Do not round intermediate calculations. Round your answer to the nearest whole number.)

Answer :

Answer: Check attachment

Explanation:

a. Calculate the total variance for an increase of 0.10 in its beta.

The answer here is 0.2700

b. Calculate the total variance for an increase of 2.62% in its residual standard deviation.

The answer is 0.2664

Check the attachment for more explanation

${teks-lihat-gambar} topeadeniran2

Other Questions