.RA = 1.6% + 0.70RM +eA
RB = -1.8% + 0.90RM +eB
σm = 22%; R-squareA = 0.20; R-squareB = 0.15
Assume you create a portfolio Q, with investment proportions of 0.40 in a risky portfolio P,0.35 in the market index, and 0.25 in T-bill. Portfolio P is composed of 70% Stock A and 30% Stock B. a. What is the standard deviation of portfolio Q ? (Calculate using numbers in decimal form, not percentages. Do not round intermediate calculations. Round your answer to 2 decimal places.)