Question: The following are estimates for two stocks. Stock Expected Return Beta firm-specific Standard Deviation A A 0.15 0.66 0.34 B 0.22 1.14 0.4 The market

The following are estimates for two stocks. Stock Expected Return Beta firm-specific Standard Deviation A A 0.15 0.66 0.34 B 0.22 1.14 0.4 The market index has a standard deviation of 0.21 and the risk-free rate is 0.04. Suppose that we were to construct a portfolio with proportions: - Stock A 0.32 Stock B 0.44 The remaining proportion is invested in Tbills Compute the standard deviation of the portfolio. Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321

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