The following are estimates for two stocks.

Stock

Expected Return

Beta

firm-specific Standard Deviation

A (S)

0.16 (ER)

0.68 (B)

0.34 (SD)

B (S)

0.18 (ER)

1.4 (B)

0.41 (SD)

The market index has a standard deviation of 0.19 and the risk-free rate is 0.04.

Suppose that we were to construct a portfolio with proportions:

Stock A 0.33

Stock B 0.45

The remaining proportion is invested in Tbills

Compute the nonsystematic standard deviation of theportfolio.

Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.