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The standard deviation of the market index portfol...

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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? (Round your answer to 4 decimal places.) (b)Calculate the total variance for an increase of 5% in its residual standard deviation? (Round your answer to 4 decimal places.)

 

Paper#2601 | Written in 18-Jul-2015

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