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.)

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

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Apple's targeted many different segments with their just one promotional campaign. They target every male and female who wanted to have cell phone and could afford higher prices. Moreover, they also targeted youngsters as well who wanted to have something different and creative in their life. Apple's campaign was quite cleverly designed and positioned. Apple got enormous success with the help of this campaign. Apple surpass Samsung quite easily in terms of sales. With the help of this example, we can easily and confidently say that different segments can be targeted even with one single product and promotional campaign, if executed effectively and efficiently.