A risk manager at a bank is speaking to a group of analysts about estimating credit losses in loan portfolios. The manager presents a scenario with a portfolio consisting of two loans and provides information about the loans as given below:

	Loan 1	Loan 2
Amount borrowed	CNY 15 million	CNY 20 million
Probability of default	2%	2%
Recovery rate	40%	25%
Default correlation between Loan 1 and Loan 2	0.6

Assuming portfolio losses are binomially distributed, what is the estimate of the standard deviation of losses on the portfolio?