Suppose that the index model for stocks A and B is estimated from excess returns with the following results:

RA = 3.6% + 1.20RM + eA RB = 1.6% + 1.5RM + eB M = 16%; R-squareA = 0.25; R-squareB = 0.15 Assume you create portfolio P with investment proportions of 0.70 in A and 0.30 in B.

What is the standard deviation of What is the firm-specific variance of your portfolio? (Do not round your intermediate calculations. Round your answer to 4 decimal places.)