2 Problem 8-6 The following are estimates for two stocks 10 points 1 eBook Firm- Specific Expected Standard Stock Return Beta Deviation A 89 1.00 284 B 16 1.60 40 Print 6 Reference The market index has a standard deviation of 25% and the risk-free rate is 9%. a. What are the standard deviations of stocks A and ? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Stock A Stock B % b. Suppose that we were to construct a portfolio with proportions: Stock A Stock B T-bills 0.25 9.50 0.25 Compute the expected return, standard deviation, beta, and nonsystematic standard deviation of the portfolio. (Do not round Intermediate calculations. Enter your answer for Beta as a number, not a percent. Round your answers to 2 decimal places.) % Expected retum Standard deviation Beta Nonsystematic standard deviation %%