Q1: The following are estimates for two stocks. Stock Expected Return Betal Firm-Specific Standard Deviation A 13% 0.8 30% B 18 1.2 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 return, standard deviation, beta, and nonsystematic standard deviation of the portfolio. ASW