Ask Question
3 August, 03:24

he standard deviation of the market-index portfolio is 35%. Stock A has a beta of 1.40 and a residual standard deviation of 45%. a. Calculate the total variance for an increase of 0.20 in its beta. (Do not round intermediate calculations. Round your answer to the nearest whole number.)

+3
Answers (1)
  1. 3 August, 03:37
    0
    = (45%) ^2 + (1.6*35%) ^2=0.5161

    This is the required total variance
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “he standard deviation of the market-index portfolio is 35%. Stock A has a beta of 1.40 and a residual standard deviation of 45%. a. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers