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The following are estimates for two stocks. Stock Expected Return Beta firm-specific Standard Deviation A 0.17 0.69 0.29 B 0.2 1.15 0.38 The market index

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The following are estimates for two stocks. Stock Expected Return Beta firm-specific Standard Deviation A 0.17 0.69 0.29 B 0.2 1.15 0.38 The market index has a standard deviation of 0.19 and the risk-free rate is 0.07. 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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