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

R_A= 3.4% + 1.15R_M+e_A

R_B= 1.5% + 1.30R_M+e_B

_M= 15%;R-square_A= 0.26;R-square_B= 0.16

Assume you built a portfolioQ, with investment proportions of 0.50 in a risky portfolioP, 0.30 in the market index, and 0.20 in T-bill. PortfolioPis composed of 60% StockAand 40% StockB.

a.What is the standard deviation of portfolioQ?(Calculate using numbers in decimal form, not percentages.Do not round intermediate calculations. Round your answer to 2 decimal places.)

b.What is the beta of portfolioQ?(Do not round intermediate calculations.Round your answer to 2 decimal places.)

c.What is the "firm-specific" risk of portfolioQ?(Calculate using numbers in decimal form, not percentages.Do not round intermediate calculations.Round your answer to 4 decimal places.)

d.What is the covariance between the portfolio and the market index?(Calculate using numbers in decimal form, not percentages.Do not round intermediate calculations.Round your answer to 2 decimal places.)