Problem $6-5($Algo$)$

The standard deviation of the market$-$index portfolio is $\backslash (20\mathrm{.}85\backslash \%\backslash ).$ Stock $\backslash ($ A $\backslash )$ has a beta of $1\mathrm{.}5$ and a residual standard deviation of $\backslash (30\mathrm{.}85\backslash \%\backslash ).$

Required:

a$.$ Calculate the total variance for an increase of $0\mathrm{.}15$ in its beta. $($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

Total variance

b$.$ Calculate the total variance for an increase of $\backslash (3\backslash \%\backslash )$ in its residual standard deviation. $($Do not round intermediate calculations. Round your answer to $\backslash (\backslash$mathbf$\{2\}\backslash )$ decimal places.$)$

Total variance