Q1: The following are estimates for two stocks. Stock Expected Return Beta Firm-Specific Standard Deviation 13% 18 0.8 1.2 30% 40 The market index has a standard deviation of 22% and the risk-free rate is 8% a. What are the standard deviations of stocks A and B? b. Suppose that we were to construct a portfolio with proportions: Stock A: .30 Stock B: .45 T-bills: .25 Compute the expected returm, tandard deviation, beta, and nonsystematic standard deviation of the portfolio