stock: OXM--return =11.5% Beta=1.25 Firm Specific Standard Deviation=36%
FRD--return16% Beta=.75 Firm Specific Standard deviation
portfolio == Treasury bills 15%, OXM 35%, FRD 50%
Treasury bills have an expected return of 3%, the expected market return as measured by the S &P is 11% and the S&P's standard deviation is 21%.
What is the standard deviation of this portfolio?