The standard deviation of the market-index portfolio is 20%. Stock A has a beta of 2.00,...

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 increase of 0.10 in its beta.

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

(Do not round intermediate calculations. Round your answers to the nearest whole number.)

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