Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 2.0%

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Suppose that the index model for stocks A and B is estimatedfrom excess returns with the following results:RA = 2.0% +0.40RM + eARB = −1.8% +0.90RM + eBσM =15%; R-squareA =0.30; R-squareB = 0.22Assume you create a portfolio Q, with investmentproportions of 0.50 in a risky portfolio P, 0.20 inthe market index, and 0.30 in T-bill.Portfolio P is composed of 70%Stock A and 30% Stock B.a. What is the standard deviation ofportfolio Q? (Calculate using numbers indecimal form, not percentages. Do not roundintermediate calculations. Round your answer to 2 decimalplaces.)
b. What is the beta ofportfolio Q? (Do not round intermediatecalculations. Round your answer to 2 decimalplaces.)
c. What is the "firm-specific" risk ofportfolio Q? (Calculate using numbers indecimal form, not percentages. Do not roundintermediate calculations. Round your answerto 4 decimal places.)
d. What is the covariance between theportfolio and the market index? (Calculate usingnumbers in decimal form, not percentages. Donot round intermediate calculations. Roundyour answer to 2 decimal places.)